A lecturer in the Accounting and Finance Programme, Federal University Otuoke, Dr. Etumudon Ndidi Asien has posited that auditors’ remuneration should be determined by audit clients’ characteristics.
Dr. Ndidi Asien made this position at the 4th Annual Conference for African Accounting and Finance Association in Cape Town, South Africa.
The Lecturer who presented a paper on “Audit Clients’ Characteristics and Auditors Remuneration: New Insights from Nigeria” stated that the complexity of an organization, number of audit committee meetings in a year among others should determine the fees auditors charge in executing their professional duties within an organization.
“The study shows that financial risk exerts the greatest impact on Auditors’ remuneration and that there is no evidence of a significant relationship between Auditors, remuneration and age of audit clients “he noted.
According to the paper presented, the objective was to help top management of companies know the determining factors of Auditors remuneration which he highlighted as complexity of the organization, audit clients familiarity, number of audit committee meetings in a year and audit clients’ age.
“If an auditor audits a complex organization that has branches all over the country, it is expected the Auditor should be paid higher than a smaller company with one branch, which is the basis of my research” he pointed out.
Dr. Asien asserted that the determining factors enlisted in the research will address grey areas of auditors’ payment in Nigeria to avoid slander.
Thanking Federal University Otuoke for the opportunity given to him to attend the conference, the Accounting and Finance lecturer, urged the University to always encourage its Academics to attend such scholarly conferences.
The African Accounting and Finance Association Conference brought together established scholars, early career researchers, graduate students, policy makers, professional bodies and practitioners across Africa to deliberate on contemporary issues in accounting and finance.