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

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.

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