DETERMINANTS OF EXTERNAL AUDITORS’ ROTATION IN LOCAL GOVERNMENT COUNCILS OF KADUNA STATE

This study examined empirically the determinants of external auditors’ rotation in Kaduna State Local Governments. A survey of local government directors of finance, internal auditors, area auditors and local government inspectors was conducted to collect data on perceptions of attributes important in the external auditors’ appointment(rotation) decision in Kaduna State Local Governments. The population of the study comprised all the 23 Local Governments of Kaduna State. The sample size was 15 local governments drawn using stratified random sampling techniques. Data were obtained from primary sources through the use of questionnaire. Descriptive statistics and logistics regression technique were employed as the methods of data analysis. The study found that auditor and audit environmental attributes relating to audit quality, specifically reputation and tender documents, were perceived to be the most important considerations in auditors’ appointment(rotation)decision. The study recommended that auditor general for local governments should consider the quality of tender document or process in appointing new auditors and also recommended that auditor general for local governments should consider appointing reputable audit firms that are well known in audit quality service provision.