Effect of Audit Quality and Detection of Irregularities in Mdas in Nigeria

The study was concerned with measuring the effect of audit quality on the detection of irregularities in Ministries, Departments and Agencies in Nigeria using an explanatory approach based on the use of quantitative survey data. 391 valid sets of responses, obtained from a cross-sectional survey, were utilised in the estimation of a path model, using the Partial Least Squares Structural Equation Modelling (PLS-SEM) approach. Estimated path coefficients showed Audit Quality components of Audit Independence and Auditor Expertise to be positive and statistically significant predictors of Detection of Irregularities in the study area. It is, therefore, crucial that MDAs strengthen auditor independence by instituting clear reporting lines that separate audit functions from management influence, with periodic review of independence safeguards by regulatory oversight bodies to confirm compliance. Additionally, MDAs should prioritise the continuous development of auditor expertise by implementing structured training programmes, sponsoring professional certifications, and providing access to contemporary auditing tools and technologies. Regular workshops and refresher courses should be institutionalised to maintain up-to-date knowledge of auditing standards and emerging risk areas.

Keywords: Audit quality, Auditor independence, Auditor expertise, Detection of irregularities, Public sector auditing.