Effect of Auditors' Years of Experience on Financial Statements' Fraud Reduction in Public Nigerian Business Enterprises

Abstract : This study investigates the effect of auditors’ years of experience on financial statements’ fraud reduction in public Nigerian business enterprises. Anchored on the white-collar crime theory, and fraud diamond theory, it aims to determine how auditors’ years of experience influence their effectiveness in minimizing financial statement fraud. Employing a quantitative research design, the study collected primary data through a self-constructed 52-item questionnaire administered to 576 purposively selected respondents accounting and finance staff from six major Nigerian public enterprises, including NNPC, NPA, PHCN, NRC, NIPOST, and FAAN. Data were analyzed using both descriptive and inferential statistical methods. Findings revealed that auditors’ tenure and industry specialization significantly reduce the incidence of financial statement fraud, suggesting that accumulated experience and professional competence enhance fraud detection and prevention. The study concludes that while auditors’ experience plays a vital role in detecting and deterring fraud, these must be reinforced through strong ethical standards and institutional support. The study recommends that auditors be encouraged to pursue postgraduate education, professional certifications, and continuous development programs to strengthen their analytical and ethical capacities, thereby promoting credibility and integrity in financial reporting within Nigeria’s public enterprises.