Browsing by Author "Aduam, William Kwame"

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    An empirical analysis of auditors independence and audit quality in Ghana.
    (KNUST, 2016-08) Aduam, William Kwame
    Audit reports serve as an important source of information for various stakeholders in the world of business. Thus, a reasonable assurance that the financial statements are free from material misstatement is imperative for policy and decision making. The need to ensure reliable and high quality audit work has focused on Auditors independence since familiarity can impair their independence. The collapse of Banks and corporations in Ghana has drawn the attention of Public and Regulatory agencies to issues about Audit quality. The study examines the effect of auditor independence on audit quality of listed firms in Ghana. Annual reports of the listed firms from 2010 to 2014 are used in the analysis. The ordinary least square estimation technique is used in analyzing the relationship between Auditors independence and audit quality. The study finds auditor independence has significant implications on audit quality as higher audit fees mandates that the auditing agency provide quality work. Firms that engage highly reputable audit firms are more likely to have higher audit quality. This notwithstanding, long tenure of auditors is seen to impair auditor independence and audit quality through familiarity. The study therefore recommends that the provisions on auditor tenure are strictly adhered to given that tenure affects audit quality. Further, the study recommends that, Institute of Chartered Accountants Ghana through its quality assurance monitoring mechanism strictly ensures adherence to the provision of International Standards on Auditing regarding Auditors independence as well as the International federation of Accountants code of ethics.