ABSTRACT

The study was carried out to ascertain the effect of auditors on the performance of commercial banks in Nigeria. The specific objectives were to examine the effect of audit report on return on asset of banks in Nigeria and determine the effect of audit report on return on equity. The study adopted ex post facto and survey research design because the data for the study involved secondary data while sampling techniques adopted for this study was based on judgmental sampling technique. Multiple regression technique and relevant parameters students’ t-test was used to test and analyze the hypothesis. Findings of the study reviewed that audit report has a significant effect on return on assets of banks in Nigeria; audit report has a significant effect on return on assets of banks in Nigeria. Also there was a very high relationship between audit report and the various dependent variables that is Return on Asset (ROA) and Return on Equity (ROE). The study concluded that investors are influenced by the contents of the audited financial statement in their investment decisions; therefore it can be deduced that in order to make appropriate investment decision the interested parties in financial statement must have an in-depth understanding of the financial performance of the banks. The study recommended that banks should have more control measures to prevent fraud, management should provide training and staff development programs and staff should be adequately motivated for performance.