AUDITOR'S INDEPENDENCE AND FINANCIAL REPORTING CREDIBILITY IN THE NIGERIA BANKING SECTOR

This study evaluated the relationship between auditors’ independence and financial reporting credibility in the banking sector. An ex-post facto research design was adopted for the study, where 10 banks were used as sample covering a period 2014-2023. Data were obtained from the financial statements of the considered banks and analyzed using regression analysis with the aid of E-View. The results showed that all three null hypotheses were rejected, thus accepting their alternatives namely, audit fees, audit tenure, and firm size have a positive relationship with accrual quality. The study concluded that auditors’ independence has a positive relationship with financial reporting credibility, with recommendations that firms in the banking sector should develop contingency plans for situations where audit fees may need to increase unexpectedly, and that lager audit firms that have more resources, expertise, and experience that will lead to high audit quality should be used to ensure the accuracy and reliability of financial statements.