International Journal of Research and Innovation in Social Science (IJRISS) |Volume IV, Issue VIII, August 2020|ISSN 2454-6186 www.rsisinternational.org Page 303 Auditor’s Independence (AUDINDP) and the Quality of Financial Reporting (FRQ) in Listed Deposit Money Banks (DMB’s) in Nigeria Professor Owolabi, S.A. 1 , Afolayan, Oluwatobi 2 1 Professor, Department of Accounting, Babcock University, Nigeria 2 Department of Accounting, Babcock University, Nigeria Abstract: This research evaluates the impact of the AUDINDP on the quality of FRQ in listed DMB’s in Nigeria. The necessity for auditors’ independence is fundamental for completion of the audit reporting process. Autonomy of the auditor reveals in technical, investigative as well as reporting practices. For an audit report to be openly certified as capturing the true picture of things, the auditors ought to be viewed to be certainly autonomous. The population for this research comprised of 20 listed DMB’s in Nigeria. Purposive non-probability sampling method was employed to select the sample of ten (10) banks. Secondary data was adopted and likewise gathered from certified corporate annual report of the sampled DMB’s. Descriptive tests, correlation analysis as well as panel OLS regression was adopted for analysis purposes. The research discovered that there exists a positive association amid AUDINDP and FRQ in DMB’s. AUDINDP is a major audit quality in financial reporting. Auditors and professional accountants should follow the integrity of autonomy to realize credibility as well as reliability demanded from FR. Keywords: Financial Reporting Quality, Auditor’s Independence, Firm Size, Non-Audit Services, Audit Report I. INTRODUCTION ost recently, it is necessary to produce financial reports which are relevant globally. Hence, disclosing high quality financial statements is vital since it will positively impact providers of funds as well as other investors in taking investment as well as related funding decisions. IASB (2008) specified revealing the IASB’s conceptual systemas a key condition for financial reporting quality which is the compliance with its objective as well as the qualitative features of financial statements. Tasios and Bekiaris (2012) indicated that fundamental qualitative factors entail relevance as well as faithful representation. IASB (2008) explained that enhancing qualitative characteristics (comparability, verifiability, timeliness and understandability) augment the fundamental qualities. In recent times, auditors have been indicted on account of involvement pronounced as detrimental and anti- social behavior strictly for the goal of high fees. The importance of auditor autonomy was hinged upon significant corporate scandals such as the insolvency filing of Enron on the 2 nd December, 2001 for twelve months. The audit deficiency issues that were recorded across the world for instance Enron (USA), Northern Rock (UK), Metagelshaft (Germany), Parmalat(Italy) and Lever Brothers; Cadbury (Nigeria) brought a need to reevaluate AUDINDP. Consequently, auditors grapple with credibility matters stemming from the prevalent public insight that auditors have no autonomy from corporate directors and this leads to the worry about the audit quality. These frauds negatively influenced public perception. In relation to this, supervisory bodies for auditing profession have specified that such events have the capacity to portend the auditing profession and have much broader economic effect. The objective of this research is to observe the impact of AUDINDP on the quality of financial reporting in listed DMB’s in Nigeria. The paper will provide an in-depth insight into auditor’s autonomy. The need for the auditor’s autonomy arises as it adds reliability and assurance to the financial statements.The study would increase the knowledge of stakeholders in understanding what to expect in a qualitative financial report. It would also enlighten them on what to and what not to expect from the report and how to properly construe the contents of the report. The study is useful to accountants and auditors as it stresses the importance independence, objectivity and professionalism and how to maintain this crucial attribute. II. LITERATURE REVIEW 2.1 Auditor Independence Okolie (2007) posted that independence is crucial because of the belief that the professional accountant/auditor is needed to give validation as well as reliability to report organized by the corporate entity. The auditor’s declarations still lends credence to the accounting reports even in situations of no significant misstatements as well as errors in the accounting reports by certifying the nonexistence of such. Albeksh (2017) defined AUDINDP as the auditor’s capacity to uphold an objective as well as unbiased mental perception, being neutral during the course of the audit, analyzing the outcomes as well as verification in the prepared audit report. Auditors ought to be neutral actions, personal look and behavior. Hence, auditors should possess individual specifications such as expert knowledge and know how; M