AUDITOR’S ROLE IN SAFEGUARDING THE GOING CONCERN CONCEPT IN NIGERIA

ABSTRACT

This study dealt on Auditors role in safeguarding the going concern concept in Nigeria. The burden of preparing the financial statement lies with the director, the auditor is required to report on these financial statements. A lot of people have failed to understand that the role of an auditor is not to detect fraud or error but the key role of an auditor is to “examine the financial statement prepared by the director of the company and report on it to shareholders. This study sought to investigate the relationship between the role of an auditor and the going concern of the company, to assess the effect of Auditors beneficial shareholdings on the credibility of audit report, to ascertain the effect of auditors non audit engagement services on the credibility of external audits, to examine the impact of non-compliance with audit rotation policy on audit performances. In achieving this objective, a number of research tools were employed both the primary data and the secondary data. The research did not limit herself to a particular audit firm in a state, indefinite statistical formula was used and the five hypotheses was tested using the chi-square. The result drawn from the tested hypothesis reviewed that there is a relationship between the role of an auditor and the going concern concept, auditors’ beneficial holding affect the credibility of audit report, there is significant relationship between auditors engagement in non audit services and the credibility of external audit, here is a strong correlation between non-compliance with audit rotation policy and audit performance. It was therefore recommended that the big four audit firms in Nigeria should be used for further study.