Journal of Global Accounting Department of Accountancy
Vol. 6 No. 1 June, 2019. ISSN: 1118-6828 Nnamdi Azikiwe University,
www.unizikjga.com Awka
copyright © 2019 JOGA
Page75
AUDITOR INDEPENDENCE AND AUDIT QUALITY: EMPIRICAL
EVIDENCE FROM QUOTED OIL AND GAS FIRMS IN NIGERIA
Okegbe, Theophilus O.
1
, Ojimadu, Jerry Okechukwu
2
, Orajekwe, Jerry Chukwuebuka
3
,
Egbunike, Francis Chinedu
4
1
Department of Accountancy; Nnamdi Azikiwe University; Awka; Anambra State; Nigeria.
2
MSc Student (Department of Accountancy; Nnamdi Azikiwe University; Awka; Anambra State;
Nigeria.)
3
Department of Accountancy; Nnamdi Azikiwe University; Awka; Anambra State; Nigeria.
4
Department of Accountancy; Nnamdi Azikiwe University; Awka; Anambra State; Nigeria.
*Correspondence to: Egbunike, Francis Chinedu, Nnamdi Azikiwe University, Department of
Accountancy, Faculty of Management Sciences, PMB 5025,
Awka, Anambra State, Nigeria.
E-mail: cf.egbunike@unizik.edu.ng Tel.: +2348132850409
ABSTRACT
Article Info: Received June 30, 2019; Reviewed July 4, 2019; Accepted July 8, 2019.
This study examines auditor’s independence and audit quality in Nigeria’s oil and
gas sector. Two research hypotheses were formulated for the study. This study
made use of ex-post facto research design. The data for the study where obtained
from annual reports and accounts for the period. The data were analyzed using
binary logit regression with the aid of E-views, 9.0. The results showed that the
proxies of auditor independence; audit fee and audit tenure were both positive;
but, only audit fee was statistically significant. The study recommends among
others that audit firms are selected based on the tripartite characteristic of
experience, exposure and specialisation. This study has implications for
shareholders in determination of audit quality thereby safeguarding shareholder
wealth.
Keywords: audit independence, auditor tenure, audit fee, auditor quality