Drivers of Audit Failure in Nigeria- Evidence from Cadbury (Nigeria) PLC.

Abstract

This study is an investigation of audit failure factors in Nigeria’s corporate governance firmament. An explanatory case study approach was adopted for the study supplemented by archival data and newspaper reports. An explanation was sought for the findings of the regulatory authority that the auditor in this case was not only negligent and incompetent but also did not demonstrate sufficient Professional skepticism. One of our findings is the fact that the auditors may have stayed for too long on the job and had thus impaired their independence. Provision of non- accounting services to this particular audit client was also fingered as a cause of the audit failure. We recommend mandatory rotation of auditors and prohibition of provision of non- audit services to audit clients among others. One limitation, though, of our study is that it is a single case study and may not be generalised.

KEY WORDS: Audit Failure, Cadbury (Nig.) Plc, Professional Skepticism, Negligence.