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
Date Written: June 30, 2019
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: Suggested Citation