Effect Of Independent Of External Auditors On Accounting Quality Of Selected Nigerian Firms

Abstract

This study examined the effect of independent of external auditors on accounting quality of three selected nigerian firms. Specifically, the study ascertained the effect of audit firm size and audit degree of competition on discretionary accruals of quoted Nigerian firms. Ex-post facto research design was adopted. The sample of three selected Nigerian firms were used for the study. The data were analysed and tested using Ordinary Least Square with aid of E-View 9.0. The result revealed that there is a significant positive effect of audit firm size significantly on discretionary accruals of quoted manufacturing firms in Nigeria: and, that the degree of competition has a non-significant positive effect on audit discretionary accruals of quoted manufacturing firms in Nigeria. Based on this, it was recommended that the firms management should be wary of the degree of competition during choice of audit firm: This is particularly important during the bargaining process, as firms enjoying a monopolistic status may charge abnormally high audit fees.