Benue State University, Makurdi

Metrics of Statutory Functionality: Corporate Governance and Nigerian External Auditors Examined

Okesola, Anthony Olabanji*

Abstract

Corporate governance refers to the process that governs and directs firm managers to take decisions that are in line with the shareholders goal of wealth maximization. The survival of most corporate organizations beyond the foundation shareholders depends on the external auditors. It is for this reason this paper examines the nexus between corporate governance and external auditors responsibilities in turning around the fortune of the companies in Nigeria. The paper argues further, that though an external auditor that give a positive report on a corporate organization, that fails within a reasonable time after the report resulting from financial scandals, is now answerable for the audit done, more stringent penalties should imposed on external. The paper concluded by suggesting among others that appointment and dismissal of external auditors should left with shareholder and not management and audit committee.