Authors : Appah Ebimobowei and Oyadonghan James Keretu
Abstract: The aim of this study is to examine, the role of mandatory rotation of auditors on the quality, costs and independence of an audit in South-South, Nigeria. The data for this study were collected through primary and secondary sources. The primary data were generated from the randomly administered questionnaire to 172 respondents drawn from auditors and users who have substantial knowledge of accounting and auditing and were analysed using Spearman rank order correlation coefficient. The findings of the study show that there is statistical significant relationship between mandatory rotation of auditors and the quality of audit reports, independence of auditors and the costs of audit. The study concludes that mandatory rotation of auditors improves the quality of services, creates an effective peer review, allow fresh approach, reduce failure, restore investors and public confidence and independence. Thus, the rotation may result to increase in the cost of audit services.
Appah Ebimobowei and Oyadonghan James Keretu, 2011. Mandatory Rotation of Auditors on Audit Quality, Costs and Independence in South-South, Nigeria. International Business Management, 5: 166-172.