Journal VOL. 2 NO. 2, September. 2021, ISSN: 2811 - 2628
Auditing and Sustainability Prospect of Micro, Small and Medium Enterprises in Nigeria
Fajulugbe Kehinde Bolanle, Omorogbe Comfort
ABSTRACT
Auditing of Micro, small and medium enterprises (MSMEs) have witnessed a change with the advent of Companies and Allied Matters Act (CAMA) 2020 that has withdrawn the statutory requirement of appointing external auditors. This study thus examined the influence of auditing on sustainability of MSMEs and the impact of the audit exemption legislation on sustainability of MSMEs. A quasi-experimental research design was adopted that used the cross-sectional survey setting to sample 99 respondents using a structured questionnaire that depicted the views of owner-managers, company accountant/auditors, customers and external providers of finance in areas that related to the objective of the study. Statistical tools in Descriptive and Inferential analysis of mean, standard deviation and regression analysis were used to analyse the research questions and hypothesis. The outcome of the study showed that auditing indeed has a significant influence on the sustainability of MSMEs, R2=50.2 (P<0.05); as it relates to MSMEs being able to effectively and efficiently manage their finances, among others. The researcher recommended that there should be subsequent amendments to the CAMA 2020 that would stipulate alternative safeguards and measures to enable users of financial statements of MSMEs have adequate confidence in relying on their financial information. Voluntary audit should be encouraged since MSMEs is the growth engine of every economy, any means of ensuring their survival should be employed.
Keywords: Sustainability, MSMEs, Auditing, CAMA-2020, Financial
Download the full text uploaded