DETERMINANTS OF AUDITORS INDEPENDENCE IN LISTED FIRMS IN NIGERIA

ABSTRACT

This study investigated the determinants of auditor’s independence in listed firms in Nigeria using a sample of eighty-eight (88) listed non- financial firms. The data was collected for the period 2014 to 2018. Descriptive statistics and inferential statistics consisting of panel least squares, fixed effect, pooled data and general method of moment regressions were used for the data analysis. The findings reveal that audit committee independence, managerial ownership and audit tenure were significant and exerted positive impact on auditor independence of listed firms in Nigeria.  Board gender diversity was negative and has no significant relationship with auditor independence of the listed firms. The study concludes that audit committee independence, managerial ownership and audit tenure are key drivers of auditor independence of listed firms in Nigeria. The study therefore recommends that there is need to be a designed framework by the Institue of Chartered Accountants of  Nigeria (ICAN) to efficiently and effectively regulate independence of external auditors in firms as this will help to prevent frequent scandals and litigations against auditors.