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Factors Affecting Auditor’s Independence for Quoted Companies in Nairobi Securities Exchange

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  • Helena Linnah Liu

    (Faculty of commerce, Egerton University, Kenya)

  • Fredrick Kalui

    (Faculty of commerce, Egerton University, Kenya)

Abstract

The purpose of this study was to evaluate the factors that affect the auditor’s independence among the companies that are quoted on the Nairobi securities exchange. The specific objectives of the study were to establish the effect of audit firm size on auditor’s independence, to determine the effect of audit firm’s tenure on auditor’s independence, to establish if size of the audit fee has an effect on the auditor’s independence among the companies quoted on the securities exchange and to examine the effect of audit committee competence on the auditor’s independence among companies quoted on the Nairobi securities exchange. The study used a descriptive sample design. The target population entailed all the 64 companies quoted on the NSE by December 2023. The accountants, internal auditors and senior managers formed the main respondents. A total of 180 respondents were selected and used for the study. Questionnaire was used for data collection. Data was analyzed using descriptive statistics (mean and standard deviation), correlation analysis as well as simple and multiple linear regression analysis. The SPSS software was used to analyse the data. Results indicated the existence of a strong positive correlation between auditor independence and audit firm size (r = 0.928, P value = 0.008

Suggested Citation

  • Helena Linnah Liu & Fredrick Kalui, 2025. "Factors Affecting Auditor’s Independence for Quoted Companies in Nairobi Securities Exchange," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(6), pages 3915-3928, June.
    • Handle: RePEc:bcp:journl:v:9:y:2025:issue-6:p:3915-3928
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    References listed on IDEAS

    as
    1. Neni Meidawati & Arden Assidiqi, 2019. "The influences of audit fees, competence, independence, auditor ethics, and time budget pressure on audit quality," Jurnal Akuntansi dan Auditing Indonesia, Accounting Department, Faculty of Business and Economics, Universitas Islam Indonesia, vol. 23(2), pages 117-128.
    2. Sang-Lyul Ryu & Jayoun Won, 2023. "The effect of input hours by each audit professional on audit efficiency: evidence from Korea," International Journal of Trade and Global Markets, Inderscience Enterprises Ltd, vol. 17(3/4), pages 319-329.
    3. Wycliffe Mukulu Musyoka & Evans Geoffrey Mogeni & David Musimbi Murunga & Pollyne Mbithe Mutunga, 2018. "Effect of Stock Market Development on Economic Growth: A Case of Nairobi Securities Exchange, Kenya," Noble International Journal of Economics and Financial Research, Noble Academic Publsiher, vol. 3(5), pages 59-70, May.
    4. Dwi Martani & Nur Aulia Rahmah & Fitriany Fitriany & Viska Anggraita & Zhaojun Yang, 2021. "Impact of audit tenure and audit rotation on the audit quality: Big 4 vs non big 4," Cogent Economics & Finance, Taylor & Francis Journals, vol. 9(1), pages 1901395-190, January.
    5. repec:uii:jaaife:v:23:y:2019:i:2:p:117-128 is not listed on IDEAS
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