Bank Failure and The Role of Auditors in Nigeria

lzedonmi, F and Babajide, A. A and lyoha, F. O. (2008) Bank Failure and The Role of Auditors in Nigeria. Nigeria Journal of Banking and Financial Issues, 6. ISSN 1119 - 8494

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Abstract

The incessant rate of failure among Nigerian banb OO'i' beemi off grreil!i11001111 cern to stakeholders in the country s jinw1cial sector.. AUU~H /lllrre !IJxtnnlk ng sector is very vibrant and dynamic with a lot of inlflk!Yrilillllfii«PPfltfj ullnrndl!lmnrne characterized the sectm; the present increasing rate C?ffaiiiOIIIfli'! /f1oxr»,, iiy,· oil«~~nmiiJffl1f, and people have blamed the entire failure on the auditon.· o{IIITIIejimiiU(f!(f// /!Jxommkl\' without actual empirical evidences to back such clainn~ Thii.s fP!illllf1IIP!T D(f}J)IIHiiinn:et!l the role of external auditors of banks in Nigeria and ob.sen'ed KII/J111111 tiiTkl!! tar/llf!'!f711¥1Ji! auditors were not entirely responsible for bank failure. Ho'l.n"'!I!Wif!'!f;. ~wte ~rm/1 (fJ1 weak audit proce.dure adopted by some of the auditors o{llfloe .faiiHd fl»tourn/ky;_ Ftmr instance, the auditors who audited the failed banks failed lo.fiaiJHtfN' Ullff11 CriHll tii~Kt: low response rate for debtors circularization. We belie1,;e tleallllw J«J%> ~rm.'ii£ rate constitutes a sufficient warning signal to keep the cmdiilftW:J,' tfPjf ullne.!fimii/lfEilll banks in red alert to probe further. We are of the opinimt Hllnrudl nllrre l!ii«JciFIII~e./friJJr failure should he apportioned among lhf! auditors. ha11b Ullll(fJIHIMJI!li,lf5lllllmtl,. 1/Piunmlk directors and the regulatory bodies.

Item Type:	Article
Subjects:	H Social Sciences > HG Finance H Social Sciences > HJ Public Finance
Divisions:	Faculty of Law, Arts and Social Sciences > School of Social Sciences
Depositing User:	Mrs Patricia Nwokealisi
Date Deposited:	01 May 2014 10:35
Last Modified:	01 May 2014 10:35
URI:	http://eprints.covenantuniversity.edu.ng/id/eprint/2509

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