The Accounting Profession and Nat

39077 WordsSep 3, 2011157 Pages
THE JOURNAL OF ACCOUNTING ANAN Volume 1, No 1, March 2009 Published by: Nigerian College of Accountancy, Jos Postgraduate Professional College and Training Arm of ANAN ...Advancing the Science of Accountancy EDITORIAL BOARD Prof. Edet Robinson Iwok, Ph.D, FCNA Prof. A. A. Okwoli, Ph.D, FCNA Prof. Abimaje Akpa, Ph.D, FCNA Prof. B. C. Osisioma, Ph.D, FCNA Prof. Edet B. Akpakpan, Ph.D, FCNA, Prof. A. C. Ezejulue, Ph.D, FCNA Prof. A. S. Mikailu, Ph.D, FNIA Chairman, Education, Training, Research and Technical Committee, ANAN Chief V. C. Azie Accountant-General of the Federation Auditor-General of the Federation Registrar, ANAN Chairman, Fed. Inland Revenue Service Director of Research, National Universities Commission Treasurer,…show more content…
iii The Journal of Accounting Vol. 1 No. 1 March, 2009 THE EFFECT OF AUDIT ON CORPORATE SUSTAINABILITY, GROWTH AND DEVELOPMENT By J. R. A. Adefiranye Abstract For profitability and liquidity, companies need adequate finances. Finance stakeholders (that is, shareholders, creditors and other financial lenders) are the providers of these finances. Their interests and beliefs in the activities of the companies are required to make them invest. A recent 'share investments ' survey in Lagos and Abuja, involving 100 respondents covering investors and prospective investors (60 and 40 respondents respectively), revealed that 70 percent of the investors place heavy reliance on the integrity of a company 's auditor before investing in that company. 80 percent of the prospective investors chose never to advance money of whatever form to any company because they have lost confidence in audit firms. This, they hinged on the fact that companies, despite their stunning performance reports attested to by audit firms, still go bankrupt. Using questionnaires and interviews, we gathered relevant data from investors, prospective investors, audit firms and some financial institutions (banks) for this study. We analysed these data using descriptive and inferential statistical analysis tools. It was discovered that there is a very strong link between audit and finance stakeholders

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