EXTERNAL AUDITORS AND FINANCIAL TRANSPARENCY IN NIGERIAN BANKS A CASE STUDY OF UBA NIGERIA PLC

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Authors

1. Dr. Kelechi Margaret AMASIATU¹

Department of Accounting, Faculty of Arts, Management & Social sciences, University of Agriculture and Environmental Sciences Umuagwo Imo State, Nigeria.

[email protected] 

2. Dr. Chinedu Blessing-Mike OBIALOR²

Department of Taxation/Banking & Finance, 

Faculty of Arts, Management & Social sciences, 

University of Agriculture and Environmental Sciences Umuagwo Imo State, Nigeria. 

E-mail [email protected] or [email protected] 

3. Dr. Chikaodi Josephine Michael ANUMAKA³,   Department of Accounting, Faculty of Arts, Management & Social sciences, University of Agriculture and Environmental Sciences Umuagwo Imo State, Nigeria.

[email protected] 

Abstract

This paper has discussed how external auditors can improve financial transparency in Nigerian banks (A Study of UBA Nigeria PLC). The principal aim of the research was to investigate how the external auditors can improve financial transparency in the Nigerian banks. Other objectives were; to; Assess the effectiveness of external audits in detecting fraudulent financial activities in the Nigerian Banks. Test the effect of auditors independence on the transparency of the financial reporting in the Nigeria banks and to determine the effect of the auditors rotation on level of disclosure of financial reporting in the Nigerian Banks. The study used descriptive research design and the primary and secondary sources of data were used. Primary data were gathered by direct interaction with the respondents using structured questionnaires and secondary data was obtained mainly through journal articles, books and industry reports. 

The results indicated that external auditors played a significant role in uncovering the discrepancies, imposing the ability to comply with the financial reporting standards, and promoting greater financial transparency. The research thus suggested inter alia that the regulatory agencies like the Central Bank of Nigeria (CBN) and the Financial Reporting Council (FRC) should require the continuous professional development programs by the auditors in order to make them to be at par with emerging trends and complexities in the financial sector.

Keywords: External Auditors, Financial Transparency, Nigerian Banks, Uba Nigeria Plc