Effect of Creative Accounting on Audit Risk and Audit Failure in Nigeria: The Auditor’s Perspective.

Nwaorgu, I.A., Abiahu, M.C., Iormbagah, J.A. & Egbunike, P.A. (2019. April). Effect of Creative Accounting on Audit Risk and Audit Failure in Nigeria: The Auditor’s Perspective. In Contemporary issues in business, accounting and fintech. Proceedings of 5th Annual International Academic Conference

12 Pages Posted: 4 Nov 2019

See all articles by Mary-Fidelis Chidoziem Abiahu

Mary-Fidelis Chidoziem Abiahu

Nnamdi Azikiwe University - Department of Accountancy

Innocent Augustine Nwaorgu

Michael Okpara University of Agriculture - Department of Accounting

Jacob Aondohemba Iormbagah

Department of Accounting, College of Management Sciences, Michael Okpara University of Agriculture Umudike, Umuahia, Abia State, Nigeria

Amaechi Egbunike

Nnamdi Azikiwe University - Department of Accountancy

Date Written: June 30, 2019

Abstract

The study examined the effect of creative accounting on audit risk and audit failure amongst practicing auditors in the South-eastern geopolitical zone of Nigeria. The study employed survey research design using Chi-square to analyze data from questionnaires issued to 115 respondents among 4 audit firm from the geo-political zone in November 2018. Findings from the study revealed that creative accounting has a significant effect on audit risk while, creative accounting has no significant effect on audit failure. Hence, based on the results obtained from this study it is recommended that, Auditors should ensure that detail attention is given to the detection of creative accounting practice by managers during the course of audit practice and auditors must make sure that they adhere strictly to the rules of the GAAP during practice in order to avoid failure of audit.

Keywords: Creative Accounting, Audit Risk and Audit Failure

JEL Classification: M40

Suggested Citation

Abiahu, Mary-Fidelis Chidoziem and Nwaorgu, Innocent Augustine and Iormbagah, Jacob Aondohemba and Egbunike, Amaechi, Effect of Creative Accounting on Audit Risk and Audit Failure in Nigeria: The Auditor’s Perspective. (June 30, 2019). Nwaorgu, I.A., Abiahu, M.C., Iormbagah, J.A. & Egbunike, P.A. (2019. April). Effect of Creative Accounting on Audit Risk and Audit Failure in Nigeria: The Auditor’s Perspective. In Contemporary issues in business, accounting and fintech. Proceedings of 5th Annual International Academic Conference, Available at SSRN: https://ssrn.com/abstract=3474754

Mary-Fidelis Chidoziem Abiahu (Contact Author)

Nnamdi Azikiwe University - Department of Accountancy ( email )

Awka, Anambra 23400
Nigeria

Innocent Augustine Nwaorgu

Michael Okpara University of Agriculture - Department of Accounting ( email )

Umuahia-Ikot Ekpene Road
PMB 7267
Umudike, Abia State 440001
Nigeria

Jacob Aondohemba Iormbagah

Department of Accounting, College of Management Sciences, Michael Okpara University of Agriculture Umudike, Umuahia, Abia State, Nigeria ( email )

Umudike
Umuahia, Abia State
Nigeria

Amaechi Egbunike

Nnamdi Azikiwe University - Department of Accountancy ( email )

Awka, Anambra 23400
Nigeria

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