2021 Archive
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Title: EXTERNAL AUDIT CHARACTERISTICS AND EARNINGS MANAGEMENT INCOME SMOOTHING APPROACH.pdf Author: EGOLUM, PRISCILLA UCHENNA Abstract: Abstract This study seeks to evaluate the effect of external audit characteristics on earnings management of listed consumer goods firms in Nigeria. based on the principal-agent theory which assumes that the auditor may impair his ability and freedom to make a sound assessment. This study specifically, explored the subject by employing a sample of seventeen (17) listed consumer goods firms in Nigeria for the period between 2010 and 2019. External audit characteristics which were employed as independent variables include; audit tenure and joint audit together with asset tangibility which is employed as control variable. In this study, a unique measure of earnings management (small profit) is employed as the dependent variable following related extant literature. Further, the effect of external audit characteristics on earnings management is evaluated using logistic regression analyses technique which revealed that on average and all things being equal, higher auditor independence has a significant likelihood of reducing managers income smoothing activities in Nigeria. Particularly, this result is consistent with the expertise hypothesis which postulates that extended tenure improves working relationship between the auditor and the firm which makes for better understanding and learning on the job. However, based on the outcome of this study, it is recommended that serious attention should be given to policies that tend to improve audit tenure system compliance in Nigeria. View |
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Title: INVESTIGATION AND REPORTING AMONG LISTED DEPOSIT MONEY BANKS IN NIGERIA COVID 19 ERA DIMENSION.pdf Author: Owolabi, S.A. PhD. & Sadiq Otaru H. Abstract: Abstract The issue of investigation and reporting by firms has been a recurring decimal globally in developed and developing countries, with its attendant financial consequences on investors and economy of the countries concerned. However, with the advent of COVID-19 pandemic a lot of more detailed investigation and reporting were recommended by accountancy regulators. This study therefore examined some guidelines introduced under COVID-19 pandemic which include going concern threat, loss of revenue, interim financial reports and impairment of financial assets under COVID 19 pandemic. The study adopted survey design and had a population of 14 banks and the sample size is also 14 banks through census sampling technique as a unit of analysis. The sample population is 140 and it was arrived at using judgmental sampling technique with 10 senior managers in financial control unit of each of the banks. The Primary sources of data was used in generating data through the administration of questionnaires from respondents which were analyzed using multiple regression technique of data analysis with the aid of (SPSS) Version 23. The study found that going concern threat and loss of revenue under covid-19 pandemic had significant effect on investigation and reporting by Listed Deposit Money Banks (LDMBs) in Nigeria. The study also found that interim financial reports and impairment of assets under COVID 19 pandemic does not have significant effect on investigation and reporting by LDMBs in Nigeria. It was also found that under COVID 19 pandemic financial reports are more detailed than before the pandemic. The study recommends that top management of LDMBs in Nigeria should be disclosing more of going concern threats, revenue loss, interim financial reports and impairment of financial assets arising from COVID-19 pandemic to enhance investigation and reporting by banks in Nigeria. View |
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Title: DETERMINANTS OF DEPOSIT ACCUMULATION STRATEGIES OF DEPOSIT MONEY BANKS (DMBS) IN NIGERIAN.pdf Author: EHIEDU, VICTOR C. PhD. Abstract: Abstract The study on determinants of Nigeria’s deposit accumulation strategies of deposit money banks (DMBs) (1991-2019). The independent variables were premeditated using banks’ liquidity, branch network expansion, prime lending rate, deposit interest rate, and unemployment rate while deposit accumulation strategies of DMBs was premeditated by aggregate customer deposit. Data was analyzed by descriptive statistics, Pearson correlation analysis, stationarity (unit root) test, cointegration test, and granger causality test. Global statistics (f-statistics) result shows banks’ liquidity, branch network expansion, prime lending rate, deposit interest rate, and unemployment were collective determinants of deposit accumulation. Individually, the OLS indicates bank liquidity, prime lending rate, and unemployment rate were inconsistent with deposit accumulation strategies of DMBs. Branch network expansion and deposit interest had affirmative relationship with deposit accumulation strategies of DMBs. Thus, the study concludes that deposit accumulation strategies of DMBs were mostly affected by changes in bank liquidity, deposit interest rate, and unemployment rate. Therefore, we recommend that Nigerian banks opt for optimum liquidity level, increased branch network and deposit interest. Meanwhile, DMBs should be socially amenable by corroborating with Government and private sectors in supporting varied entrepreneurship skill acquisition programs for employment generation. View |
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Title: MATERIALITY AND AUDIT RISK THE HALLMARK OF AUDIT PRACTICE.pdf Author: Owolabi S. A. PhD. & Busari Tajudeen Abimbola Abstract: Abstract This study examines concept of materiality and various types of risk in audit. In carrying out this work, the study employed secondary data, using exploratory research design. Journals, periodicals and other related materials in relation to accounting and auditing regulatory guidelines were extensively examined. In the process, the study reveals that handling the concept of materiality and various types of risk in an audit require expertise knowledge and auditors careful scrutiny, professional due diligence, true and fair expression of opinion based on the financial statement examined by them in line with the accounting principles, concepts and prescribed standards of International Standards on Auditing (ISA) and in tandem with International Financial Reporting Standards (IFRS) prescriptions and regulatory guidelines. View |
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Title: CASH FLOW STATEMENT AND PERFORMANCE OF BANKS QUOTED ON NIGERIA STOCK EXCHANGE.pdf Author: Onuorah, A.C PhD. & Nwajei, C. A Abstract: Abstract This study assessed the statement of cash flow and performance of quoted banks in Nigeria, using panel data collated from the yearly reports of five banks listed in the Nigerian Stock Exchange from 2016 to 2020. The random impact was utilized for breaking down the data dependent on the Hausmans Test, which showed a likelihood value of 1.000. The study showed that the cash flow factors decide 99.5% of the progressions in the net profit of the banks. The result from the study uncovered that financing cash flows positively and significantly influenced the financial performance of the recorded banks, however cash flows from operations and investing activities were negative yet significant. This study recommended that banks ought to reevaluate their cash flow management strategies to enable them operate even more profitably so as to generate adequate cash enough to meet their regular responsibilities as they fall due. View |
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Title: IMPACT OF MARKET DYNAMICS ON AUDIT PRACTICE IN NIGERIA.pdf Author: Owolabi, S. A. PhD. & Desi Augustine Abstract: Abstract Shareholders and investors seem to give more preference of the audit services of the big 4, however, the regulators are concerned with the high concentration of audit services, creating less competitive market dynamics, fewer incentives to improve audit quality because of the excessive dominance by the big 4. The accounting and audit practice has transformed greatly from the ancient model of hearing and listening functions to auditing and assurance practices. In the midst of this dynamic professionalism, the big 4 (Deloitte, PwC, E&Y, and KPMG) has dominated this profession using cutting-edge reporting innovation and technologies. This study examined the audit practice and its market dynamics in the audit practice. The study employed an exploratory research design, using relevant materials, journals, periodicals, and other resources considered appropriate were systematically reviewed. The study concluded that the big 4 accounting firms have expanded the frontiers from the traditional auditing practice and have shifted the statuesque to include management consulting and advisory roles, taxation, actuarial services, corporate finance and legal services. The study recommends that the big 4 should beam its oversight torchlight within its fold and ensure that audit practice, accounting professionalism, and skepticisms oversight functions are professionally and diligently carried out to solidify its milestone achievements over the years. View |
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Title: STRATEGIC RISK MANAGEMENT AND PROFITABILITY OF NIGERIAN BANKS AN EMPIRICAL ANALYSIS.pdf Author: Ifeanyi S. Mgbataogu PhD. & Ebike M. Murray PhD. Abstract: Abstract The aim of this research is to empirically ascertain the influence of strategic risk management on profitability of corporate firms using the banking institutions as a case study. Thus, the study is designed to examine nature of relationship that exists between nature of relationship that exists between selected risk management variables (non-performing loan ratio, liquidity coverage ratio, cost to income ratio and capital adequacy ratio) and profitability of the banking system as measured by the banks’ return on assets as well as return on equity. Data were sourced from the banks’ annual books of account and also the Central Bank of Nigeria’s Statistical Bulletin. The econometric methodology of Ordinary Least Squares (OLS) were employed for data analysis. The results of the analysis indicate that only non-performing loan ratio and capital adequacy ratio are valuable in predicting variations in Nigeria’s banking firms’ profitability within the context of this study. As indicated from our findings, for Nigerian Deposit Money Banks financial performance is heavily determined by risk management practices. Therefore, it is recommended among others that banks should establish an appropriate credit risk environment. This will entail approving and periodically reviewing the credit risk strategy and significant credit risk policies of the bank. The strategy should reflect the bank’s tolerance for risk and the level of profitability the bank expects to achieve for incurring various credit risks. View |
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Title: BUSINESS RISK APPROACH TO AUDITING AND COVID 19 CHALLENGES.pdf Author: Owolabi, S.A. PhD. & Akinbowale, Sileola Adebusola Abstract: Abstract The COVID-19 pandemic is an unparalleled public health emergency which has affected and still affects economies, both developed and developing. The pandemic has also had its toll on industries as well as the audit function. Considering the challenge of COVID 19 and given the nature of the audit process, this study examines the business risk approach to auditing amidst the COVID 19 challenges. In order to achieve the objective of this study, exploratory method of research design was adopted by reviewing various literatures relating to the objective in order to arrive at our conclusion. The study revealed that the COVID 19 challenges have impact on the business risk approach to auditing. The study recommends that auditors should make adequate investment in technology that is critical for effective service delivery and minimization of risk. View |
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Title: ACCOUNTING EDUCATION AND GOOD GOVERNANCE AS PANACEA FOR INSECURITY CHALLENGES IN NIGERIA.pdf Author: Lovinah C. Emelogu, PhD & Francis N. Amaramiro Abstract: Abstract The challenges of insecurity are global issues. In Nigeria, they have taken unprecedented dimensions and so have become a more worrisome situation. This paper examined how accounting education and good governance can aid in curbing insecurity challenges in Nigeria. The researchers explored three major causes of insecurities in Nigeria to include unemployment, poverty and inequality and discussed how accounting education and good governance are veritable tools in addressing the issues of unemployment, poverty and inequality thereby curbing insecurity challenges in general. This paper recommended among other things that the government should provide employment opportunities for the teeming unemployed youths and funding educational sector adequately in order to produce enough educated workforce. View |