Effects of Unprofessional Behavior and Auditors’ Inadequate Knowledge on the Quality of External Audit Reports

Abstract

The study examined effects of unprofessional behavior and auditors’ inadequate knowledge on the quality of external audit reports. Descriptive survey research design was used in this study. The participants in this study were 500 auditors from Lagos, Nigeria. A simple random selection procedure was used to choose the sample of 150 auditors. Data was collected using a well-structured questionnaire, validated by professionals, and tested for reliability. The Cronbach-Alpha technique yielded a reliability coefficient of 0.79. The instrument was administered in two ways: physically by the researcher at the respondents' offices and with the assistance of two research assistants. Instrument of the study was also sent to the telegram and whatsapp groups of the auditors for responses. Percentage, frequency counts, mean and standard deviation were used to answered the research questions while regression was used to test the hypothesis formulated at 0.05 level of significance. The finding revealed that, statistically unprofessional behaviour and auditors’ inadequate knowledge have significant effects on the quality of external audit reporting. The study concluded that unprofessional behavior and auditors’ inadequate knowledge are affecting the quality of the report of external auditors. The study recommended, among others, that unprofessional behaviours among auditors should be addressed and should not be allowed to tarnish the image of audit profession so that users such as investors, shareholders, creditors, government, public, employers, and employees will not lose confidence in the quality of external audit reporting of the external auditors Keywords: External Auditor, Unprofessional Behaviour, Inadequate Knowledge, Quality of Audit Reports