EFFECTS OF AUDITORS STRESS ON AUDIT QUALITY

ABSTRACT

This study examines the impact of auditors' stress on the quality of audits carried out in Nigeria. The population of the study was limited to the Big 4 audit firms operating in Lagos (Deloitte, Ernst & Young (EY), PWC and KPMG). Using a questionnaire, primary data was collected from the staff of each firm. Twenty five (25) questionnaires were distributed to each firm to bring the total sample size to 100. However, only 96 were filled and returned within the stipulated time frame for the study. The data were analyzed using both descriptive and inferential statistics. The descriptive statistics were percentages and mean. The inferential statistics were correlation analysis, regression analysis and hypothesis tests. The research finds that workload and budget emphasis have a positive and significant relationship with audit quality, and a positive relationship exists between budget attainability and audit quality. The research finds that role ambiguity and role conflict has a negative relationship with audit quality. The study recommends that audit firms should reduce the outcome of role ambiguity within their workforce to ensure better quality audit. It also recommends that audit firms need to ensure that they avoid role conflict by clearly stating the specific roles of each auditor and make efforts to stick to such agreement as much as they can.