The Impact of Auditors’ Independence on the Credibility of Financial Statement in Nigeria: An Empirical Analysis

This study focused on audit independence and bank financial report credibility. An ex post facto design was used to survey four (4) banks listed on the Nigerian Stock Exchange and functioning in the African region. The data from 2014 to 2018 was examined using multivariable linear regression. According to the data, audit independence had a considerable influence on the value relevance of the banks' financial reports. As a result, the audit costs had little effect on the company's stated earnings per share (a proxy for reliance on financial reports by investors). Further study demonstrates that audit independence has little impact on the timeliness of financial reporting. Banks and other organizations should engage an independent audit company to raise the level of confidence in reported financial statements and so produce a high level of dependability in financial reports. To guarantee the timely creation of financial reports, managers are also obligated to collaborate with auditors impartially.