ABSTRACT

1.1       Background to the Study

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In recent times there has been an increasingly public outcry with respect to mismanagement of public funds, embezzlement on the part of government officials, high recurrent expenditures, poor budget performance by the various government in Nigeria since 1999 (Odia, 2014). According to the report by Transparency Initiative, Nigeria has continued to be rated amongst the most corrupt countries in the world for many years consecutively since 2001 due to the collapse of public sector accountability. As a result of the increasing financial scandals and public agitation of the inability of the executive arm of government to turn things around, demand for greater accountability and transparency in the public sector has been on the increase (Green and Singleton, 2009; Mantuf, 2010).

Auditing both in the public and private sector has gained considerable expansion throughout the world. The reason for this is as a result of a growing need for transparency and accountability at all level both in the public and private sectors. Auditing which has become the owners “third eye” is of great importance in the public sector of Nigeria economy because over 65% of the asset base and other productive resources of the country come under the control of the public sector of the economy. These assets need to be safeguarded on behalf of their owners who in this case are the members of the public (Ogundana, et al., 2017).

Finally, majority of the studies on the dynamics of auditing, accountability and transparency often focus on the advanced economies. Researches on the determinants of auditors’ choice in third world countries like Nigeria are very few. This study will therefore fill in the gap in the literature by critically examining the role of auditors in enhancing accountability and transparency in public sector.

1.3       Objectives of the Study

The major objective of this study is to examine the role of auditors in enhancing accountability and transparency in public sector. The specific objectives are:

1.   To examine the effect of auditing on financial accountability in Nigeria public sector.

2.   To investigate the extent the auditing process ensures transparency in accounting for the public sector in Nigeria.

3.   To identify the problems affecting auditing practices in the Nigerian public sector.

1.4       Research Questions

The study will be guided by the following research questions:

        i.            What is the effect of auditing on financial accountability in Nigeria public sector?

     ii.            To what extent does auditing process ensures transparency in accounting for the public sector in Nigeria?

   iii.            Is lack of audit independence is a problem affecting auditing practices in the Nigerian public sector?

1.5       Hypotheses of the Study

The researcher intends to test the following hypotheses;

H_o1:     There is no significant effect of auditing on financial accountability in Nigeria public sector.

H_o2:    Auditing process does not ensure transparency in accounting for the public sector in Nigeria.

H_o3:    Lack of audit independence is not a problem affecting auditing practices in the Nigerian public sector.

1.6       Significance of the Study