Auditors Independence And Earnings Management Of Deposit Money Banks In Nigeria

📄 Project Abstract

Financial statements audit is a monitoring mechanism that reduces agency problem between management and the stockholders, and protect the interest of other stakeholders. This critical role of external auditor promotes the quality of accounting information; however, there is a growing concern by the regulators, investors and the general public over the credibility and integrity of audited financial statements and stakeholders' confidence in auditors' independence as a result of recent accounting and audit scandals in different part of the world involving earnings management. In Nigeria, there are series of default and failures in the banking sector that are connected with the management and most of the failures are not reported by the auditors but rather by the CBN. This have questioned the integrity and quality of audited financial statements of Nigerian banks, as well as the independence of external auditors on whether they are independent of management influence via audit fees and te...