AN EVALUATION OF NON-AUDIT SERVICES ON AUDITORS INDEPENDENCE: A SURVEY OF SELECTED FIRMS IN ILORIN METROPOLIS, NIGERIA.
The provision of Non-Audit Services (NAS) by auditors to their clients has aroused continuous concern on possible loss of auditors independence from the regulators and the public. The tightened public concern arises from the recently alleged accounting scandals of several large companies such as Enron, world come and Zerox and the growing publicity of NAS fees becoming ever increasing portion of the audit firms’ total income. This paper therefore investigates the interrelationship between Non-Audit Services and Auditor’s independence and provides empirical evidences that will be useful to professional accounting bodies for the purpose of issuing guidelines on standards for non-audit services practices. The study employed both descriptive and inferential statistical techniques. They type of descriptive survey employed was a case study survey of selected firms in Ilorin Metropolis. Recent data were collected for research analysis majority by the use of questionnaire. Statistical tools such as Analysis of Variance (ANOVA) and chi-square were employed to determine the type of relationship exiting between different variables considered. The findings revealed that Non-Audit Services generate very real challenges to the perception of Auditor’s independence than is generally considered. These challenges may become increasingly burdensome as NAS develop into a significant part of the auditors work. The importance of independence was also revealed by the findings and unless it is guarded jealously, the accounting profession may sustain some fatal injuries. The study recommends among others the need to initiate necessary process to establish guidelines on standards for NAS practice in order to arrest these debates facing the profession.
