The paper investigates the effects of audit tenure and rotation on the credibility and reliability of financial statements published in Nigeria. The paper adopted the survey design with specific reference to preparers and users of published financial statements of companies in Nigeria. The paper used questionnaire to collect data, and tested the stated hypothesis by the ANOVA procedure, the study found out that there is a significant influence of audit tenure and rotation on auditor’s independence and credibility of financial statement. The paper therefore recommended among others that Company laws should be amended to now accommodate clauses forMandatory Audit tenure and Rotation among practising firms and Audit partners so as to ensure full-scale compliance and that Auditors liabilities to third parties should now be extended to include Audit committees to making good the losses sustained by financial statement users as a result of relying on accounts approved and certified by them as a basis of their investment decisions.
Ireghan et al. (Thu,) studied this question.