EFFECT OF NON-AUDIT SERVICES ON AUDITOR’S INDEPENDENCE: EVIDENCE FROM ACCOUNTING PRACTITIONERS IN ABIA STATE

Abstract

This study investigates the effect of the provision on non-audit services on Auditor’s independence: evidence from accounting practitioners and consequent effect on the auditor’s objectivity and professional skepticism in the financial statement audited. The study used the Institute of Chartered Accountants of Nigeria (ICAN) and Association of National Accountants of Nigeria (ANAN) domiciled in Abia State. The data for the study were generated from primary source: questionnaires were the major instrument for data collection. The instrument was subject to both content and faces validity by experts. Three questions were structured in Likert scale form and the formulated hypotheses were tested with ordinary Logistic regression using SPSS package. The study found that non-audit services have no effect on auditor’s independence, the auditor’s objectivity and professional skepticism. The study therefore recommends that the audit committee should have full oversight of the auditor’s independence, including the nature and extent of the work they do and their fees. The audit committee should make its charter public. The charter should give investor information about how the audit committee chooses its auditors and how it decides the type of service they can provide.