ABSTRACT
This research investigated the audit risk management practices of small audit firms in the Nigeria , employing a descriptive survey design to navigate through the multifaceted aspects of audit risk management. A comprehensive sample comprising 102 distinct audit firms was instrumental in gathering insightful data, which was skillfully orchestrated through structured questionnaires. A profound discovery was the pivotal reliance on strategies such as "Client Selection and Acceptance," embraced by 66 firms, and "Audit Planning," adopted by 55 firms, illuminating their cardinal significance in navigating the audit risk terrain. The study unveiled a landscape embellished with external influences like client profiles and regulatory environments, critically shaping audit risk practices, as highlighted by 44 and 32 firms, respectively.
A geographical exploration delineated the strategic positioning of firms predominantly in vibrant economic locales, with a notable 37% concentration in Lagos. Challenges unveiled in the audit risk odyssey include a pronounced client resistance, cited by 60 firms, coupled with a constrained accessibility to essential resources, as experienced by 26 firms.
Diving into the demographics revealed an intriguing diversity, with a substantial 40.2% of firms established between 2002 and 2010. Specialization trends echoed a symphony of versatility, with a noteworthy 31.37% of firms navigating through a confluence of accounting, auditing, and taxation.
Synthesizing these findings, the study fosters recommendations, including a fortified client engagement, a revitalized continuous strategic evaluation, and an exploration into the realms of geographical expansion opportunities. Conclusively, this research paints a vibrant tapestry of audit risk management practices, strategies, challenges, and the influential symphony of external factors, offering a rich reservoir of insights into the operational echoes of small audit firms in Nigeria.
