Stamatis Generic Model and Audit Quality in Nigeria

Due to the frequent business failure coupled with incessant malpractices and increase in fraud techniques, there is a need for auditors to improve audit quality to address these negative occurrences. This study investigated the application of Stamatis generic model as a continuous quality improvement technique to influence audit quality in Nigeria. The population consists of 916 licensed auditing firms in Nigeria and 683 was the sample size upon which questionnaire was administered. 641 copies of questionnaire were returned representing a response rate of 94%. The questionnaire was validated by certified quality management. The reliability and internal consistency of the instrument for data collection was confirmed by the Cronbach’s Alpha reliability coefficients (Rc) of 82% obtained from pilot study. Pearson product moment correlation coefficient was used to confirm the research hypotheses. The result obtained showed positive correlations and statistically significant relationships among the level of Stamatis generic model awareness and degree of implementation (r =.752; p =.000) and the application of Stamatis generic model and audit quality (r =.630; p =.000). Findings show that though the model theoretically predicted audit quality but are yet to be implemented by auditors in Nigeria as a result of ignorance, inexperience and low level of firms’ resources. The study concluded that Stamatis generic model will improve the quality of auditor’s reports if implemented and through multiplier effect, influences the integrity of financial statements and stakeholders’ decision. It was recommended that audit firms should adopt SGM to have quality output and satisfied clients.