DETERMINANTS OF EXTERNAL AUDITORS CHOICE IN NIGERIAN QUOTED MANUFACTURING COMPANIES

摘要

This paper investigates the determinants factors affecting auditors choice in quoted manufacturing companies in Nigeria. This study utilized both primary data and secondary data. The primary data were collected through the administration of structured questionnaire, while the secondary data were sourced from annual accounts and reports of sampled companies. The questionnaire on the determinants of the choice of auditors used by Oxera, (2006) was adopted for the study. 500 copies of the questionnaire were administered to respondents who were purposively selected shareholders of the quoted manufacturing companies in south western part of Nigeria. 308 copies of the questionnaire were returned and analyzed. The analysis revealed that response rate was 62%. Purposive sampling technique was adopted because it enables the researchers to identify and utilize knowledgeable shareholders in the process of selecting external auditors (include: members of audit committee, Managing Director, finance director and company secretary). Data collected were analyzed using both descriptive and inferential statistics. Logistic Regression Analysis method was used to analyze the data. The results showed that the two most important factors influencing the company’s choice of auditors are international coverage and long-term relationship with current auditors. Collectively, the findings have important implications for audit markets in emerging economies in which the sustainability of manufacturing firms is crucial to overall economic development.