Global Advanced Research Journal of Management and Business Studies (GARJMBS) ISSN: 2315-5086 June 2014 Vol. 3(6), pp 242-248
Copyright © 2014 Global Advanced Research Journals
Original Research Articles
Corporate Failure and the Dilemma of Auditors
Friday E. Akpan and Adebisi, Joseph Femi, Ph.D
Nigerian College of Accountancy, kwall, near Jos - Plateau State.
Corresponding Author Email: firstname.lastname@example.org
Accepted 18 June 2014
Corporate failure has continued to dominate the entire corporate environment throughout the World, and Nigeria is not an exception. This has elicited continuous outcry about corporate survival; and the blame is always shifted to corporate management on the account of its failure to harness and use available resources effectively and efficiently for good corporate objectives. Thus, there is an increasing lack of confidence on corporate management. The negligence has led to untimely liquidation of many businesses. The main objective of the study is to examine corporate failure and the dilemma of auditors and expectation gap which has led to some pressures for increased auditor liability. It further looks at corporate failure and where the auditors share in it. The study made use of survey research design and the population for the study comprise of 200 questionnaires administered made up of shareholders, business groups and employees within Jos metropolis of Plateau State. We had 188 respondents representing 94% of the survey. Data were presented on tables of percentages and we tested the research hypotheses wit f-ratio. Findings from the study revealed that corporate failure exist despite efforts of auditors to carry out effective audit and corporate scrutiny. Proper auditing of financial records of companies has a relationship with corporate survival, and remains competitive and transparent in business environment as required by International Financial Reporting Standard (IFRS). The following recommendations were made. Corporate Auditors should perform audit with technical competence, integrity, and independence with defined objective. They should search for and detect material misstatements whether intentional or unintentional. Government and relevant stakeholders corporate owners about engaging competent hands in carrying out corporate audit in line with international best practice as these will enhance total compliance with requirements of IFRS as this will reduce incidences of corporate failure.
Keywords: Corporate failure, Corporate world, IFRS, Survival.
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