Our Archives

Call 09159097300, or 09067754232 for any enquiries.

Project Topic:

AUDITORS REPORT ON CORPORATE GOVERNANCEIN NIGERIA NON-FINANCIAL INSTITUTION A case study of Guinness Nigeria Plc

Project Information:

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 50 ::   Attributes: Questionnaire, Data Analysis,abstract, table of content, references ::   2,568 people found this useful

Project Body:

Abstract

The major corporate collapses and related frauds which occurred in Nigeria and around the world have raised doubts about the credibility of the operating and financial reporting practices of companies in Nigeria.

This stirred a number of professional and regulatory organizations to recommend reforms that will improve transparency in financial reporting and thereby increase audit quality and corporate governance practices.

Although evidence of corporate governance practices and audit report exists from developed economies, very scanty studies have been conducted in Nigeria where corporate governance is just evolving. Therefore, this study provides evidence on corporate governance, audit report, and firm related attributes from a developing country,Nigeria. Logistic regression was used in investigating the questions that were raised in the study. Findings from the study show that ownership by non-executive director has the possibility of increasing the quality of audit report.

Evidence also exist that size of the company and business leverage are important factors in audit report for companies  on the Nigerian Stock Exchange. The study suggests that the composition of non-executive directors as members of the board should be sustained and improved upon in order to enhance audit quality.

CHAPTER ONE:

1.1       INTRODUCTION   

According to McConomy and Bujaki, 2000), there has been a considerable debate in recent times concerning the need for strong corporate governance globally(,with countries around the world drawing up guidelines and codes of practice to strengthen governance (Cadbury, 1997, Corporate Governance Code of Nigeria, 2005). The rationale for this emphasis can be linked to increased concerns over the integrity of securities markets (International Federation ofAccountants-IFAC, 2010; Millstein, 1999).

Good corporate governance by boards of directors is recognized to influence the quality of financial reporting, which in turn has an important impact on investor confidence (Levitt, 1998 and 2000). Studies have shown that good governance reduces the adverse effects of earnings management as well as the likelihood of creative financial reporting arising from fraud or errors (Beasley, 1996; Dechow, et al., 1996; McMullen, 1996).

Traditionally, the external auditor has also played an important role in improving the credibility of financial information (Mautz and Sharaf, 1961; Wallace, 1980).

In recent times, a series of well-publicized cases of accounting improprieties in Nigeria has captured the attention of investors and regulators alike. The search for meansto ensure reliable and high financial reporting has largely focused on the structure of audit report. The auditing profession has been proactive in attempting to improve audit report by issuing standards focused on discovery and independence. As a result, there has been a concerted effort to devise ways of enhancing independence (Corporate Governance Code of Nigeria, 2005; Blue Ribbon Committee, 1999). The profession has also responded to denigrations on audit report. It emphasized that, by its nature, the inherent limitations of an audit make it impossible to eliminate the risk of audit failure (Ricchiute, 1998; IFAC, 2009). The effect of sound governance practices on the quality of financial reporting has recently received attention from researchers, particularly in the United States (McMullen, 1996; Beasley, 1996; Beasley, et al., 2000; Abbott, et al., 2000). The main focus of these studies is the relation between auditcommittees and fraudulent financial reporting, with results generally supporting a negative relation between anactive audit committee and the likelihood of a company being cited for fraudulent reporting. While these resultsprovide evidence from a strong and sophisticated capital market environment, very little research has beenconducted in countries where capital markets are less developed and where governance mechanisms are stillevolving. However, sound corporate governance practices are equally, if not more important, in countries thatare attempting to gain credibility among global investors.

This is particularly so in Nigeria as the countryattempts to regain investor confidence following widely reported financial crises

1.2 STATEMENT OF THE PROBLEM

The weakness of corporate governance has proved to be the most important factor blamed for the corporate failure consequences from the economics and corporate crises. There is much that can be done to improve the integrity of financial reporting through greater accountability, the restoration of resources devoted to audit function, and better corporate governance policies (Saudagaran, 2003). Concerns have also emerged about reduced audit report. Economist (2004) noted that there are questions about the independence of the “Big 4” and suggested that concentration is lowering the quality of audits. Therefore, our study extends and contributes to the body of research using Nigerian data to investigate the likely impact of audit report and governance related attributes.

This study is motivated by the interest surrounding the appropriateness of reforms instituted by corporate governance code in Nigeria in response to the corporate failures, global best practice and their implied efficacy in the face of significant implementation and audit report. We investigate empirically the relationship of attributes in the code in improving financial reporting quality.

1.3 OBJECTIVES OF THE STUDY

This study specifically identified the following objectives:

i.       To examine if board independence affects audit report.

ii.      To investigate ifnon-executive directors’ ownership affects audit

report.

iii.     To examine if executive directors’ ownership and audit report

iv.     To identify the structure of the CEO/Chairmanship of companiesin Nigeria; and

v.       To examine the relationship between board compositions, ownership, institutional structures, CEOChairmanship and firm characteristics on audit report.

1.4 RESEARCH QUESTIONS

The main research problem is broken down into sub-problems stated as research questions, which guided thestudy. Attempts were made in the course of the research to resolve the following questions which are raised:

i.       Does board independencehave any relationship with audit report?

ii.      Does non-executive directors’ ownership affects audit report?

iii.     Is there a relationshipbetween executive directors’ ownership and audit report?

1.5 RESEARCH HYPOTHESES

The null hypotheses stated below, were tested in order to provide answers to the research questions mentioned.

Hypothesis 1:

H (0):There is no significant relationship between boards

independence and audit report.

H (1):There is significant relationship between board’sindependence and audit report.

Hypothesis 2:

H (0):There is no significant relationship between non-executive directors’ ownership and audit report.

H (1):There is significant relationship between non-executive directors’ ownership and audit report.

Hypothesis 3:

H (0):There is no significant relationship between executive directors’ ownership and audit report.

H (1):There is significant relationship between executive directors’ ownership and audit report

1.6 SIGNIFICANCE OF THE STUDY

The importance of auditing can be illustrated under the principal-agent relationship. The demand for external audits is directly related to the fact that it is the directors (the agents) who prepare the financial statements, which is primarily based on cost reasons. Therefore, this study is expected to provide useful insight into improving audit report. This study contributes to the audit literature as it provides additional empirical evidence on the impact of the size of audit firm on the level of audit report. The study also reflects the quality of audit report in Nigeria. This study will be useful to stakeholders in the Nigerian Stock Exchange (NSE), as it provides evidence on the relationship between audit report and the reform instituted by them in formulating the Code of Corporate Governance for listed companies in Nigeria.

1.7 SCOPE OF THE STUDY

This study is premised on the appraisal of audit report and corporate governance in Nigeria. Therefore, data on corporate organisations in Nigeria were sought in providing answers to the problems and questions that have been raised in this research work. The study focuses on Guinness Nigeria plc.

1.8 RESEARCH METHODOLOGY

The hypotheses formulated for this studywill be carried out using primary data and secondary data. The primary data consists of self-administered questionnaires and personal interviews, while the secondary data consists of data from various journals, magazines, annual reports of banks, the internet and other literatures. Data collected will be gathered, presented and analyzed accordingly using chi-square. Data will be presented using tables and percentages.    


Get The Complete Project »

Project Department:

MORE ACCOUNTING FREE UNDERGRADUATE PROJECT TOPICS AND RESEARCH MATERIALS

Instantly Share this Project On Social Media:

CLOSELY RELATED ACCOUNTING FREE UNDERGRADUATE PROJECT TOPICS AND RESEARCH MATERIALS

AN APPRAISAL OF THE IMPLICATION OF ELECTRONIC BANKING IN NIGERIA BANKS (A CASE STUDY OF ACCESS BANK)

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 67 ::   Attributes: Secondary data, Data Analysis,Abstract  ::   14269 engagements

CHAPTER TWO REVIEW OF RELATED LITERATURE Electronic banking in Nigeria has overtime been viewed by many especially economists as having a lot of implications on the economy of Nigeria and especially...Continue reading »

A CRITICAL ANALYSIS OF THE USE OF FINANCIAL STATEMENTS IN ASSESSING THE PERFORMANCE OF AN ORGANIZATION (A CASE STUDY OF FIRST BANK NIGERIA)

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 75 ::   Attributes: Questionnaire, Data Analysis, Abstract  ::   11786 engagements

ABSTRACT The study was carried out to analyse how an organization performs making use of the financial statements with First Bank of Nigeria Plc serving as the case study. the study disclosed that th...Continue reading »

AN EVALUATION OF THE PERFORMANCE OF NIGERIAN STOCK EXCHANGE IN THE ECONOMIC DEVELOPMENT OF NIGERIA ( A CASE STUDY OF NIGERIAN STOCK EXCHANGE)

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 78 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   7208 engagements

HISTORICAL BACKGROUND OF THE NIGERIA STOCK EXCHANGE IN THE ECONOMIC DEVELOPMENT OF NIGERIAN. The nigeria stock excahnge denoted by NSE is a government establishment where stocks are traded on a daill...Continue reading »

APPLICATION OF BUDGETS AND BUDGETARY CONTROL MEASURES IN A NON-PROFIT ORGANIZATION: A CASE STUDY OF APOSTOLIC CHURCH, DELTA

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 76 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   8135 engagements

2.1 CONCEPTUAL FRAMEWORK A budget is can be defined by accountants as “a planned outcome to be generated and for the expenditure to ensure during that period and the capital to be employed to a...Continue reading »

ASSESSING BOOK-KEEPING PRACTICES OF SMALL AND MEDIUM SCALE ENTERPRISES IN CALABAR LOCAL GOVERNMENT AREA

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 69 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   7375 engagements

ABSTRACT The economy of Nigeria cannot function properly or thrive without the micro, small and medium scale enterprises (SMEs). These small scale enterprises cannot function properly if they are not ...Continue reading »

ASSESSMENT OF ADEQUATE RISK RECOGNITION AND MANAGEMENT IN NIGERIAN INSURANCE COMPANIES (A CASE STUDY OF UNION ASSURANCE COMPANY, UYO)

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 86 ::   Attributes: Questionnaire, Data Analysis  ::   6054 engagements

THE CONCEPT OF RISK Risk has been the subject of study by different scholars over the years with several meaning and definitions. But the most accepted definitions are that of J.E Banister and P.A Baw...Continue reading »

What are you looking for today?

TESTIMONIALS:

  • 1. Jayone from FPA said " I had a wonderful experience using UniProjectMaterials,though they did not deliver the material on time, but the content had good quality. I recommend UniProjectMaterials for any project research work.".
    Rating: Very Good
  • 2. Mugisha R from B.U, UGANDA said "Wow, this is great, your materials has helped me alot. Many blessings. I will inform my friends. Thanks. ".
    Rating: Very Good
  • 3. Nwachukwu Ruth Chinyerr from Michael okpara university of Agriculture,umudike said "I really appreciate this. Materials like this are good guides to writing a researchable project.".
    Rating: Good
  • 4. Ibrahim Salama from Kaduna said "Thanks You So Much Sir We Appreciate ".
    Rating: Excellent
  • 5. Ibrahim Salama from Kaduna said "Thanks You So Much Sir We Appreciate ".
    Rating: Excellent
  • 6. Mohammed A.B from Veterinary Laboratory, Zanzibar ,Tanzania said "You are doing good job to assists in research. God bless you.".
    Rating: Very Good

Paper Information

Format:ms word
Chapter:1-5
Pages:50
Attribute:Questionnaire, Data Analysis,abstract, table of content, references
Price:₦3,000
Get The Complete Project »

Best Selling Projects

Our Archives