Auditors’ Independence and Professional Services in Nigeria: Empirical Analysis Using Simple Regression Techniques

Abstract

The aim of this study anchored on agency theory was to investigate the influence of auditors’ independence on professional services in Nigeria. Survey data was collected from 180 respondents using researcher-designed-questionnaire validated by experts at a reliability coefficient of 0.77. Descriptive and multiple regression techniques were adopted in the data analysis. Findings indicated that there is a significant association between auditors’ independence and professional services measured using tax management services, financial management services, risk management services and corporate management services The study recommended that government through regulatory agencies should disapprove the practice where auditors provide other paid professional services to the same firms they audit by enforcing the provisions of the law, particularly the Sarbanes Oxley 2001 provisions which discourage such practice. This would discourage other auditors who would have wished to engage in such consultancy practices. To confirm or disapprove the outcome of this study, it was further recommended that an in-depth study into the association between auditors’ independence and professional services using larger sample size and covering more years and institutions should be performed.