AUDIT QUALITY AND COVID-19 PANDEMIC: LISTED NIGERIAN DEPOSIT MONEY BANKS IN PERSPECTIVE
David Ilemona Sule and Adamu Garba Zango
Volume 2 Issue 2
Abstract
This study argued on the theoretical impact of audit quality on the performance of listed deposit money banks in Nigeria during the period of COVID-19 pandemic. This study employs the desktop methodology to explore the possible impact of COVID-19 crisis on six key variables for audit quality during the pandemic. These include audit engagement, audit fees, going concern assessment, auditor human capital, audit procedures and audit personnel salaries. Findings from this study reveal unprecedented challenge for auditors and their clients since the global financial crisis of 2008. This study believe that COVID-19 drastically affect audit fees, going concern assessment, audit human capital, audit procedures, audit personnel salaries and audit effort, which may ultimately impact negatively on audit quality. It is therefore recommends that audit firms should invest more in digital technology, such as artificial intelligence, block chain, network security and data function development to assist in making audit staff be more adaptable to work from home to enhance effectiveness and flexibility of communication between auditors and their clients. It is further recommended that stock market regulators and other agencies such as the Central Bank of Nigeria should be more lenient in their compliance requirements to listed banks to help auditors in reporting better earnings figures, which appeared to be positively associated with audit quality. This study finally suggests directions for further study in the areas of questionnaire construction or interviews to provide empirical evidence on the potential impact of COVID-19 on audit quality. Keywords: Audit Quality, COVID-19 Pandemic, Deposit Money Banks, Financial Reporting, Nigeria
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