Due diligence audit versus statutory audit: impact on financial performance and position of the company. Evidence from Nigeria

Ing. Yemi Kehinde Olokodana

Master's thesis

Abstract:

The purpose of this thesis is to investigate the impact of statutory audit and due diligence audit on the financial performance and position of companies in Nigeria, taking Nestle Nigeria Plc as a case study using data from the company's annual reports and financial statements for the fiscal year 2023. This thesis intends to employ the use of own and estimated data from other sources to build on primary information. It establishes the relationships between statutory and due diligence audits quality on financial performance and position of the company, it emphasizes the importance, values, advantages, disadvantages of both types of audits and provides practical implications and recommendations for the auditors, the companies, and the regulators. It also adds to the library of existing literature on the role and impact of external audits on the financial performance and position of the company, especially as it concerns mergers and acquisitions. It provides a new insights and research output from a developing country, Nigeria, and deploys a detailed and calculated approach to measure and assess the impact of due diligence audit and statutory audit.

Abstract:

The purpose of this thesis is to investigate the impact of statutory audit and due diligence audit on the financial performance and position of companies in Nigeria, taking Nestle Nigeria Plc as a case study using data from the company's annual reports and financial statements for the fiscal year 2023. This thesis intends to employ the use of own and estimated data from other sources to build on primary information. It establishes the relationships between statutory and due diligence audits quality on financial performance and position of the company, it emphasizes the importance, values, advantages, disadvantages of both types of audits and provides practical implications and recommendations for the auditors, the companies, and the regulators. It also adds to the library of existing literature on the role and impact of external audits on the financial performance and position of the company, especially as it concerns mergers and acquisitions. It provides a new insights and research output from a developing country, Nigeria, and deploys a detailed and calculated approach to measure and assess the impact of due diligence audit and statutory audit.

Keywords

Due diligence audit, Statutory audit, External audit, Internal audit, Business reporting cycles

Language used: English

Date on which the thesis was submitted / produced: 10. 5. 2024

Thesis defence

• Date of defence: 18. 6. 2024
• Supervisor: Ing. Oleksandra Lemeshko
• Reader: Ing. Bc. Jana Hvozdenská, Ph.D.

Masaryk University

Faculty of Economics and Administration

Master programme / field:
Finance / Finance