Influence of Remuneration and Tenure on Auditors’ Independence in Nigeria

Abstract

For many years now, accounting regulators have had concerns about the possible lack of independence between auditors and their clients arising from a long standing professional relationship. The issue is that auditors might get too close to their clients and can lose profession skepticism and objectivity when the relationship goes on too long. This study investigated the influence of remuneration and tenure on auditors' independence in Nigeria. The study used primary and secondary data which was collected by administered a well structure questionnaire. The findings of the study showed thatthe provisions in the Company and Allied Matters Act (2004) are not sufficient to ensure auditors' independence in Nigeria and in very many situations auditors in Nigeria were allowed to serve their clients for more than one accounting year. The study concluded that auditors' remuneration and tenure should be taken into consideration by the regulatory bodies in ensuring auditors' independence in Nigeria. Keywords: CAMA, Auditors, Auditors' independence, Remuneration and Tenure.