Figure - available via license: Creative Commons Attribution 4.0 International
Content may be subject to copyright.
Context in source publication
Context 1
... present the descriptive statistics of the variable used in the study in Table 2 Table 2 highlights the description of the variables examined in the course of the study. From the table we can see that on the average about 60% of the study sample were audited by big 4 auditors which translates to having a high audit quality. ...Similar publications
Penelitian ini bertujuan untuk mengetahui pengaruh Good Corporate Governance yang di proxykan dengan variabel Kepemilikan Manajerial, Komisaris Independen, Komite Audit, dan Nilai Perusahaan terhadap Tax Avoidance pada perusahaan yang terdaftar di Bursa Efek Indonesia Periode 2013-2017 Populasi yang diambil dalam penelitian ini adalah seluruh perus...
Manajemen risiko adalah sebuah proses yang dinamis untuk mengetahui dan menangani risiko yang berdampak pada tujuan perusahaan. Dengan itu, perusahaan perlu memelihara manajemen risiko agar tidak terjadi hal tidak baik yang muncul pada perusahaan. Informasi tentang manajemen risiko ini dengan tujuan menilai sejauh mana praktik Good Corporate Govern...
In this paper, we examine the impact of distracting events to audit committee members on the firms’ earnings quality. Specifically, we focus on major events occurring simultaneously at other firms in which the audit committee members also serve as board members or CEOs. We find that during the years of major events, the number of board meetings at...
Citations
... Unlike the study by Stanley and Owota (2020), we have chosen four indicators to measure the quality of external audit, namely; Membership in the (Big Four) firms, Co-auditing (COC), membership in one of the Big 4 and Co-auditing networks (Big and COC), and auditor rotation (ROT). Membership in the (Big Four) is a dummy variable that takes 1 if the auditor belongs to a Big 4-type audit firm and 0 otherwise (Stanley and Owota, 2020;Abdullah et al., 2008). ...
... Unlike the study by Stanley and Owota (2020), we have chosen four indicators to measure the quality of external audit, namely; Membership in the (Big Four) firms, Co-auditing (COC), membership in one of the Big 4 and Co-auditing networks (Big and COC), and auditor rotation (ROT). Membership in the (Big Four) is a dummy variable that takes 1 if the auditor belongs to a Big 4-type audit firm and 0 otherwise (Stanley and Owota, 2020;Abdullah et al., 2008). Co-auditing (COC) is a dummy variable that takes 1 if the company is audited by another auditor in addition and 0 otherwise. ...
The main objective of this study is to analyze the influence of corporate governance on the quality of external auditing within Tunisian companies listed on the stock exchange. This meticulous analysis aims to elucidate how adherence to the principles outlined in the Good Governance Practices Guide can impact and enhance the quality of external auditing. The results obtained using the System GMM model highlight the Guide’s ability to strengthen governance practices on a national scale, promote transparency, and ensure the proper functioning of businesses. Furthermore, they indicate a persistence of audit quality, suggesting that well-executed audit procedures, effective internal controls, and audit continuity can contribute to better audit quality. On the other hand, this research reveals a negative and significant relationship between indebtedness and the quality of external auditing, explained by financial pressures, transaction complexity, and risks to auditor independence in heavily indebted companies. Additionally, this research investigates the correlation between board composition and audit quality. Institutional and independent directors demonstrate a significant positive impact, attributed to their expertise, independence, and role in accountability and transparency. However, the nature of the activity, whether financial or non-financial, does not seem to influence the quality of external auditing, suggesting that auditors adhere to the same standards regardless of the sector.
... An Indonesian firm that successfully upholds and cultivates its brand, demonstrates strong financial performance, and sustains its operations even in challenging circumstances during a specific timeframe receives the Corporate Image Award. Big4 public accounting firms assign a quality rating of 1 to audited companies, while non-Big4 public accounting firms assign a quality rating of 0 (Ogoun & Perelayefa, 2020). This study quantifies the company's size using the natural logarithm of the total axist, following the guidelines of Hasangapon et al., (2021), Mantik & Suroso, (2022), and Septiani et al., (2020). ...
This study aims to evaluate the fundamental factors that impact the environmental costs borne by firms included in the ESG (Environmental, Social, and Governance) index. The factors that were taken into account and analyzed include the reputation of the company, the quality of the audits, and the size of the organization in relation to environmental costs. The data collection is entailed the examination of financial records and sustainability reports. The study's population comprised companies that were indexed based on (ESG) criteria for the period of 2018–2022. The data gathering process in this study yielded a total of 285 data points for analysis, obtained from 57 different companies. The study employed a quantitative methodology using ordinary least squares and included control variables and a fixed effect. The findings of this study suggest that reputation and firm size exert a substantial impact on environmental costs, whereas the quality of audits does not have a significant effect on environmental costs. Empirically, this result shows that the better the company's reputation and the bigger the company, the higher the environmental cost spent by that company. Thus, whichever public accounting firm handles the company, will not affect the amount of environmental costs spent.
... They employed the panel data estimation procedure and found that board gender diversity, ethnic diversity, board composition and board size are significant variables that can explicate on audit quality of the deposit money banks in Nigeria, but foreign diversity does not have any significant impact on audit quality in Nigeria. Ogoun and Perelayefa (2020) ascertained the corporate governance determinants of audit quality focusing on board independence as measure of corporate governance and three control variables of firm size, leverage and firm profitability. They sampled a total of 71 non-financial firms for the periods of eight years (2008 to 2015). ...
The study ascertained the determinants of audit quality of listed companies on the Nigerian Stock Exchange. Ex Post Facto research design was used for the study. A sample of sixty three (63) companies was used for the study from a population of one hundred and seventy companies listed on the Nigerian Exchange. The binary logit regression was applied when the dependent variable is dichotomous in nature (i.e. 1 and 0). Based on the outcome, it could be deduced that the explanatory variable of auditors’ independence poses an inverse significant impact on audit quality. The result also showed that audit tenure has a significant negative impact on audit quality. Based on the findings of this study, it was recommended among others, that management are expected to ensure strong corporate governance principles that would ensure that external auditors remain independence of insiders’ influence. This is expected to enhance the auditors’ objectivity which would lead to higher audit quality ceteris paribus.
... This will help good corporate reporting. The reporting of the company's books to the public should follow the x-ray of all financial and non-financial transactions of the organization (Ogoun & Perelayefa, 2020). Therefore, auditing of the workplace by the auditors is highly laudable. ...
This study investigated audit failures, flaws and fictions, an impetus for the rapid growth of forensic examination in Nigeria. This study employed content analysis and indept literature review as methodology. Auditing is the examinant of the true state of a company and reporting to shareholders and the publics the true and faire state of the entity. However, most times audit processes are associated with failures, flaws and fictions due to compromise of auditors in mis-presenting the true state of the corporations in Nigeria. This has resulted into most corporate scandals in Nigeria. Again, most corporations in Nigeria are linked with fraudulent activities and embezzlement of corporate funds. These scenarios gave rise to the rapid growth of forensic examinations in Nigeria. Forensic examination discovers abuses, misrepresentation and fraud with the combine skills of accounting, criminology and forensic computing which is operationalised with litigation in court of law. Forensic examination is growing in a way which complement traditional auditing limitations and aim to mitigate fraudulent activities in Nigeria's workplaces.
... It benefits all stakeholders who wish to understand an organization's ability to create value over time. Indeed, integrated reporting is a new approach to reporting that provides a good presentation of the evolution of accounting and auditing (Adhariani and and presents a long series of innovations compared to the annual report that takes a standard and conventional form (Ogoun and Perelayefa, 2020). ...
... Expectations, new demands and the product of audits do not only have an impact on the audited firm itself, but even more so on the economy, the environment and the whole society (Tahir et al., 2020). It is an instrument of assurance and a source of credibility of information disclosed to stakeholders (Ogoun and Perelayefa, 2020). ...
Purpose
This paper aims to investigate the effect of audit quality and environmental auditing on integrated reporting and the effect of environmental auditing on audit quality.
Design/methodology/approach
Data was collected from a sample of 300 international companies during the period 2010–2019. The author collected the data from the Thomson Reuters Eikon database, sustainability reports and annual reports. A multiple regression analysis was performed to test the hypotheses.
Findings
The finding of this study confirms a positive and significant relationship between audit quality and integrated reporting. It is also found that environmental auditing has a positive and significant effect on integrated reporting. Thus, this study found a positive and significant relationship between environmental auditing and audit quality.
Practical implications
The findings in this paper identify strategies for improving integrated reporting as a crucial element in the processing of financial and nonfinancial information, to help managers and investors and shareholders take a long-term perspective. Therefore, the results encourage companies to invest in economic, environmental and social aspects. This enables accounting professionals, stock exchange authorities and users of environmental and social information to be aware of the factors associated with environmental reporting, to improve the efficiency of those producing the audit service.
Originality/value
The originality of this study lies in its consideration of a particular aspect of auditing, namely, environmental auditing. However, despite the large body of research on auditing and integrated reporting, to the best of the author’s knowledge, this is the first study to examine the relationship between environmental auditing and integrated reporting. Furthermore, in this research, the author has emphasized the importance of the role played by environmental auditing on audit quality. This design has been neglected in previous studies. Finally, the choice of the field of investigation for the reliability of the data used and the generalization of the results obtained, enables us to make important contributions to the user of the information.
... The use of discretion in financial reporting to manipulate contractual outcomes or firms' economic performance and to mislead the different stakeholders' group is termed earnings management (Healy & Wahlen, 1999). Fraudulent financial reporting practices, abnormal earnings management and all other forms of financial reporting malfeasances have greatly reduced investors' confidence in financial reports and its ability to perform its fundamental functions (Ogoun & Perelayefa, 2020). ...
Financial reports prepared by corporate managers communicate economic performance of an entity to various users of the reports. An important attribute of a financial report is its reliability. From the perspective of Agency theory, there is a possibility for corporate managers to be involved in manipulation of accounting earnings, with the intention of misleading users of reports. This study examined the influence of audit firm characteristics on quality of financial reports of eleven Nigerian deposit money banks for financial years, 2007-2018. The study employed Random effects generalised least squares as analytical tool. Regression results revealed a negative and significant relationship between audit firm characteristics (audit fees, joint audit) and earnings management. For quality financial reports to be achieved, it is recommended that relevant regulatory bodies in Nigeria should mandate management of deposit money banks and other financial institutions to engage services of bigger audit firms with requisite skills, professional experience and reputation. Joint audit should also be encouraged because of its added advantage of objective financial reporting over that of a single firm.
... Effort is made in this paragraph to bring out the different measures of audit quality. Audit quality has been measured using a dichotomous variable of "ones" and "zeros", with one representing the use of big four auditors by the firm and zero representing use of non-big four (Ogoun & Perelayefa, 2020;Aliu, Okpanachi & Mohammed, 2018;Gouiaa & Zéghal, 2014;Abdullah, Ismail & Jamaluddin, 2008). Big four is a concept in auditing that refers to the four biggest audit firms in the worldwide auditing market. ...
Audit quality is an issue of great concern in dealing with the confidence and credibility crisis that has engulfed the investment scene following collapse of many firms around the world as a result of outright fraud or fraudulent financial reporting. The study used panel data approach to investigate determinant of audit quality of firms listed in Nigerian Stock Exchange. Positivist research paradigm and Ex post facto research design was adopted. Thus secondary data was collected from sample of 14 firms purposively selected from non-financial firms from 2012 to 2019 resulting to 112 firm specific observations. Audit quality measured by accrual quality developed by Dechow and Dichev 2002 is the dependent variable. Audit fee, audit independence, audit switching, audit effectiveness (audit firm size) constitute the independent variables. Result of the study revealed that about eleven percent variation in the audit quality of sampled firms was jointly explained by the independent variables used in the study. The beta coefficient of the variables showed that audit fee, audit independence, audit switching and audit effectiveness (audit firm size) is negative but not significant in influencing accrual level. This indicates that the independent variables by reducing accrual level increases audit quality. The study concluded that audit fee, audit independence, audit switching and audit effectiveness by reducing accrual level has positive but insignificant effect on audit quality of selected firms. The study affirms Agency theory that managers opportunistic behaviour can be reduced by a third party employed by the owners. The study among other things recommended that firms should review their policies particularly as it concerns their external auditors to ensure that there are no familiarity threats, real or perceived conflict of interest that will undermine their independence in carry out their services. there is also need to enforce recent regulations toward audit firm rotation or switching after the ten years' period specified in the 2018 Code of corporate governance in order to reduce information risk and enhance audit quality.
... Amitada, (2016) is of the view that by reducing board size to the minimum can help in improving the efficiency and effectiveness of the board. According to Ogoun & Perelayefa, (2020) larger board size is often characterised by poor communication, inefficiency and bureaucracy in decision making. ...
... The study of Ogoun & Perelayefa, (2020) assessed the relationship between the corporate governance mechanism proxied by board independence and the audit quality in Nigerian non-financial listed companies. Necessary data were extracted from financial report of the companies under consideration for 2005 to 2015 financial year ends. ...
The general public and specific stakeholders have expressed apprehension as regards the degraded quality of the external audit report. The concept of audit quality and its determinants has been a debatable issue over the decades. The current study examined the determinants of audit quality in the context of the Nigerian listed consumer goods companies. Using the ex-post facto research, a sample of six (6) companies were randomly selected from a population of twenty existing companies as at 31st December 2020. Necessary data for the study was spooled from the audited annual financial statement of the considered companies for an eight-year period from 2012 when IFRSs became operational in Nigeria to the 2019 financial year. Correlation and regression analysis were carried out using SPSS version 22. The outcome of the study revealed a statistically non-significant but positive relationship with the board size as a proxy for corporate governance, audit firm size and company size on one hand, and audit quality on the other hand. However, a negative and statistically insignificant relationship is established between the tenure of the audit firm and audit quality in the Nigerian consumer goods sector. The following recommendations are proposed: (i) Policy measures should be put in place to regulate the activities of auditors so as to checkmate unreasonably long-term auditor-client relationship which may jeopardize objectivity and independence. (ii) Small audit firms should be encouraged to form partnerships so as to boost their capacity so as to enhance their audit engagement quality to big client companies.
... In summary, the study concluded that board attributes do not influence audit quality. Ogoun & Perelayefa (2020) analyses the impact of board independence, proxied with CEO Duality on fostering excellent audit quality. Similar to other extant literature, secondary data that are panel in nature were collected from 71 non-financial firms from 2008-2015. ...
... The presence of independent, non-executive directors on boards of entities, is consistent with findings from Nigerian studies such as Ogoun & Perelayefa (2020), Soyemi, et. al., (2019), and Ejeagbasi, et. ...
... There seem to be consensus on this area as many previous studies tend to report similar findings with an abysmal few reporting a contrary view. These include Ogoun & Perelayefa (2020) Suryanto et al (2017) and Gajevszky (2014) to mention a few. This trend is not surprising as audit engagement is largely documented to have been related to size, complexity, and risk [Soyemi (2015a), Soyemi (2015b), Kikhia (2015)]. ...
This study examined the influence of an entity's corporate governance practices on independent external auditor quality, proxied with auditor industry specialization, in Nigeria. The explanatory research design was adopted. Data were sourced from annual reports and accounts of thirty-five (35) quoted non-financial firms for 11 years from 2008 to 2018. After that, panel regression analyses were employed as the estimating technique for the model specified. The empirical results revealed that independent external audit quality is positively influenced by the firm's size but negatively influenced by board Independence and the proportion of female directors on board. Overall, aggregate explanatory variables adopted in this study accounted for 50% changes in external audit quality. Though these findings largely negate previous ones, they contribute to the extant literature and provide further directions for a future attempt at researching within emerging territories.
This study examines the impact of auditor independence on the financial performance of listed deposit money banks in Nigeria, with financial performance measured by Return on Assets (ROA). Using a panel data approach, the study analyzes the annual reports of 12 Nigerian banks from 2013 to 2023. The results show that non-audit fees and auditor rotation have negative but statistically non-significant effects on ROA, indicating limited influence on performance. Conversely, audit concentration has a positive and statistically significant impact on ROA, suggesting that higher audit concentration, linked to larger audit firms, enhances
performance by fostering investor confidence and regulatory compliance. Auditor tenure has a positive but non-significant effect, highlighting that auditor tenure does not substantially affect performance. The study emphasizes the importance of audit concentration in the Nigerian banking sector and recommends that regulators focus on ensuring competitive audit markets while strengthening policies around non-audit fees and rotation to maintain auditor independence. These findings offer valuable insights for governance practices in emerging markets and inform policymakers on improving financial transparency and stability.
