: People do business with nameless, faceless organizations on a regular basis in market cultures. Auditors and external auditing are marketed in these cultures as a trust-building watchdog with the power to develop a specific social structure. Investors and depositors in numerous Nigerian banks and corporations lost several billions of Naira as a result of unethical accounting and auditing practices, causing problems for a number of organizations and businesses. The study looked into the relationship between ethical difficulties in corporate reporting and statutory auditor liability. The survey Research Design was used in the study. A intentional sampling technique was used to choose the five largest audit firms and five medium-sized audit firms in Nigeria. Data was analysed using descriptive and inferential statistic. Findings reveal that Ethical issues in Corporate Reporting had a significant effect on Audit fee of Auditors (Adj R2= 0.28, F(3, 9)= 9.156, p <0.005); Ethical issues in Corporate Reporting had a significant effect on Audit Tenure of Auditors (Adj R2= 0.220, F(3, 9)= 11.399, p <0.005) and Ethical issues in Corporate Reporting had a significant effect on Non Audit Service of Auditors (Adj R2= 0.457, F(3, 9)= 8.756, p <0.005). The study revealed that there is a significant relationship between ethical concerns in corporate financial reporting and statutory auditor liability. It was suggested that statutory auditors ensure that a modest percentage of their overall income came from a single client company in order to prevent being harassed or intimidated while conducting their audit obligations.