ABSTRACT

The study was carried out to ascertain the effect ofauditors on the performance ofcommercial banks in Nigeria. The specific objectives were to examine the effect ofaudit report on return on asset ofbanks in Nigeria and determine the effect ofaudit report on return on equity. The study adopted expostfacto and survey research design because the datafor the study involved secondary data while sampling techniques adopted for this study was based on judgmental sampling technique. Multiple regression technique and relevant parameters students’ t-test was used to test and analyze the hypothesis. Findings ofthe study reviewed that audit report has a significant effect on return on assets ofbanks in Nigeria; audit report has a significant effect on return on assets ofbanks in Nigeria. Also there was a very high relationship between audit report and the various dependent variables that is Return on Asset (ROA) andReturn on Equity (ROE). The study concluded that investors are influenced by the contents ofthe audited financial statement in their investment decisions; therefore it can be deduced that in order to make appropriate investment decision the interested parlies in financial statement must have an in-depth understanding ofthe financialperformance ofthe banks. The study recommended that banks should have more control measures to preventfraud, management should provide training and staff development programs and staff should be adequately motivated for performance