ABSTRACT

This research was carried out in order to identify the determinants of auditor's independence on financial performances of companies in Nigeria. The various determinants of auditors independence were ascertained and its impact on financial performance of companies critically analysis. However, if audit is to improve financial performance of companies, there must be credibility and reliability as regards financial information presented by the independent auditors. Hence, this study is a movement towards improving the quality of audit practice in Nigeria to forestall the prevailing credibly crisis and loss of confidence in the auditor because of failure of most companies in Nigeria. In conducting the research, both primary and secondary data were used. The study captured the opinion of respondents, which comprises of auditors, shareholders, brokers, analysts, regulators, management, academic and other users of financial information, using two hundred and seventy-five (275) returned and usable copies of questionnaires, while the secondary data were obtained from textbooks, journals, magazines and other related literatures. The data gathered were used to answer and test the research questions and hypotheses respectively, among which is that, there is no significant effect of auditors independence on financial performances of companies in Nigeria resulting to the recommendation for the shifting of the auditors nomination process from the managers to the members of audit committee and major stakeholders, mandatory rotation of auditors and prohibition of non-audit service by auditors, etc. in order to restore auditors independence for an enhance financial performance of companies in Nigeria.