AUDITOR, AN AGENT OF SHAREHOLDERS FOR GOOD GOVERNANCE AND ACCOUNTABILITY: A SAINT AMIDST CORPORATES’ COLLAPSE IN NIGERIA

Abstract

This study examines auditor, an agent of shareholders for good governance and accountability: a saint amidst corporates’ collapse in Nigeria. The objective of this study is to determine the reasons for corporate collapse especially after auditor’s certification of their financial statements showing a ‘true and fair view.’ Qualitative and quantitative research methods were adopted in this study. The study used questionnaires, interviews, books, newspapers, internet and academic journals for data collection to give the study a complete investigation. The population of this study includes Chartered Accountants (both in the public and private practices), lawyers, academic staff of Nigerian universities, non-teaching staff of universities, non-governmental organisations, and human rights activists. Ninety persons of these people were given questionnaires to fill and were interviewed. The researcher used descriptive statistics to remove the veil to see if auditor is a saint in the face of corporates’ collapse. Data were analysed using the Likert five-point scale to aid interpretation. The result showed that auditor is not a saint amidst corporates’ collapse. Management uses its power to scuttle internal control arrangements. Auditors hide under the ‘true and fair view’ slogan to say the detection and prevention of errors and frauds are not their duties but the duties of management. It was recommended that accounting profession should revert to the previous ‘true and correct view’ for the auditor to be more responsible in meeting the expectations of the investing public. The accounting profession should make prevention and detection of errors and frauds a primary duty of auditors.