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PROFESSIONAL INDEPENDENCE AND QUALITY CONTROL IN AUDIT PRACTICE OF SELECTED ACCOUNTING FIRMS]

PROFESSIONAL INDEPENDENCE AND QUALITY CONTROL IN AUDIT PRACTICE OF SELECTED ACCOUNTING FIRMS IN UYO

ABSTRACT

The failure of many business organization after an unqualified audit opinion has been given by the external auditors in the same accounting year, have made the public to question the credibility, independence and integrity of external auditors. This research work was carried out to:

Find out the challenges to auditors independence in an audit and The methods and techniques adopted in ensuring independence.

The population of the study was made up of employees of two (2) selected audit firms in Uyo. A sample size of twenty four (24) auditors were selected and a primary data were sourced through the use of questionnaire. Data were analyzed and four research questions were validated.

The study reveals that auditors are not independent due to the following factors: undue dependence on client for loans, acceptance of goods and services as a gift or hospitality from clients. The study concludes that although the code of professional ethics are provided for auditors to ensure their independence, most auditors only adhere partially to the code.

The study therefore recommends the creation of conducive atmosphere for external auditors by the professional bodies, the government, and also the users of the audited financial statement

TABLE OF CONTENT

Content                                                        Pages

Title page

Declaration

Certification

Dedication

Acknowledgment

Table of content

List of tables

Abstract

CHAPTER ONE: INTRODUCTION

1.1Back ground of the study

1.2   Statement of the problem

1.3   Objective of the study

1.4   Research question

1.5   Significance of the study

1.6   Scope and limitation of the study

1.7   Definition of terms

1.8   Organization of the study

1.9   Historical background of the

Firms under study

CHAPTER TWO: REVIEW OF RELATED LITERATURE

2.0    Introduction

2.1    History of Auditing

2.2    Broad definition of Auditing

2.3    The need for an Audit practice

2.4    Organization of the Audit profession

2.5    The role of an independent Auditor

2.6     Types of Audit

2.7     The independence of external Auditors

2.8     Types of Independence

2.9     Professional ethics relevant to professional independence

10 Auditing standards for control in Audit work

2.11  Threat to independence

2.12  Restriction to independence

2.13  Safeguarding independence

2.14   Quality control of Audit

2.15   quality control procedures that enhance

independence in Audit firms practice

2.16  Theoretical and empirical frame work

CHAPTER THREE: RESEARCH METHODOLOGY

3.1     Introduction

3.2     Research design

3.3     Sources and methods of data collection

3.4     Questionnaire design

3.5     Population distribution and sample size determination

3.6     Instrument and design and administration

3.7     Methods of data analysis

C HAPTER FOUR: DATA PRESENTATION, ANALYSIS AND INTERPRETATION

4.0     Introduction

4.1     Questionnaire administration

4.2     Data analysis

4.3     Validation of research question

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMMENDATION

5.1     Introduction

5.2     Summary of the study

5.3     Conclusion

5.4     Recommendation

References

Appendix 1: Transmittal letter

Appendix 2: Questionnaire

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