The Influence of External Audit Quality on the Quality of Accounting Information Within Limited Companies in Cameroon
Martin Ngassa *
Department of Accounting-Finance, Faculty of Economics and Management Sciences, University of Yaounde 2, Soa, Cameroon.
*Author to whom correspondence should be addressed.
Abstract
The main objective of this paper is to examine the influence of external audit quality on the quality of accounting information within companies having an operational statutory auditor in Cameroon. In other to achieve this objective, data was collected through a questionnaire from 62 companies operating in the Littoral and Northwest Regions of Cameroon. Therefore, the Binary Logistic Regression enables to highlight that the quality of accounting information decreases with the duration of audit mandate and audit fee while it increases with the presence of audit committee. We also found that the quality of accounting information is not explained by the reputation of the audit firm. Base on the result, we recommend that company directors and other shareholders should pay attention about the duration of audit mandate and criteria for the choice of their auditor. Moreover, they should make sure having an audit committee in other to guarantee the quality of accounting information that will be produced by the management.
Keywords: Quality of accounting information, duration of audit mandate, reputation of auditor, audit fee, limited company