THE EFFECT OF AUDIT TENURE AND NON – AUDIT SERVICES ON AUDITORS NEGLIGENCE

Author: Adeniyi Segun Idowu
Department: Accountancy
Affiliation: Nnamdi Azikiwe University Awka

The research work examined the impact of audit tenure and non – audit services on auditors negligence. The main objective of this study is to ascertain the impact of audit tenure, audit fees and performance of non audit service on auditors’ negligence which may serve as the main cause of audit failure that leads to corporate crisis. The specific objectives are: to determine whether audit tenure influences audit negligence, to determine whether non – audit services provided by auditors to its client lead to audit negligence, to ascertain whether audit fees influences auditors negligence and to ascertain whether interaction of audit tenure, audit fees and non – audit service lead to auditors negligence. Business analysts, Investors and Academia were used to determine the impact of audit tenure and non audit services on auditors negligence. Survey design was adopted for this study. Copies of questionnaires were administered to 115 sample respondents. Analysis of variance (ANOVA) was used to analyze data collected statistically at 5% or 0.05 level of significance to find out the impact of audit tenure, audit fees and non audit services on audit negligence using difference in proportion, and in testing the hypotheses; Regression analysis was used, with the aid of statistical package for social sciences (SPSS) 20.0 soft ware. The test showed that lengthy audit firm tenure lead to audit negligence. The researcher recommends that the auditing profession to make significant regulatory pronouncement in this regard. Accounting and auditing profession is advised to come up with a policy on auditors performing non – audit services to its client. Consequently, there is a need to strengthen the capacity of the regulatory bodies and review adequacy of statutory enforcement provisions. Auditing firm should put their prioritized high profits.

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