THE EFFECTS OF AUDIT FAILURES ON CORPORATE ORGANISATIONS IN NIGERIA (A CASE STUDY OF MATADOR PHARMACEUTICAL ENTERPRISE AKURE)

Recorded number of audit failure during the recent past years has prompted much debate about whether high or low auditor’s compensation, especially for non audit work, among other factors has led to lax auditing standards. A reliable audit report is imperative in corporate organizations where the retention of public confidence remains of utmost importance. In this regard, the statutory auditors are the essential fulcrum upon which the concepts of objectivity, fairness coupled with independence and integrity of financial reporting rest. This assertion, notwithstanding, it suffices to say that reports from statutory auditors are still challenged. Against this backdrop, this study seeks to investigate the circumstances capable of compromising the integrity and independence of statutory auditors. A descriptive statistical analysis was used to evaluate the user’s perception of the audit report in Nigeria. One hundred questionnaires were administered on one hundred staff of three selected firms as respondents. The data collected were analyzed. The result revealed that firm of auditors had been indicted of deliberate falsification and overstating the profit of organizations. The study hereby recommended that greater diligence; professional sensitivity and utmost care should b they state that consulting services combined with auditing services may create a situation in which clients dependence displayed in the course audit engagement. Trusted and reliable financial statements are imperative so as to make sustainable decision in corporate organizations. This can only be achieved by the Auditors Independence. Considering the various groups that repose their confidence on the report of Auditors and the legal and professional consequence of unreliable Auditors report, sensitivity must be displayed to ensure quality assurance services in audit report. The findings show that confidence of the users of financial report are been eroded on daily basis because of the loss suffered as a consequence of reliance on the Audit report. These projects hereby recommend that professional accountants in the field must do everything to ensure independence in their audit engagement.