Challenges of Corporate Governance in Nigeria: The Roles of Auditors and Institutional Investors

Abstract

Good corporate governance has continually remained necessary as businesses grow and as the principal agent relationship holds sway. The attention that has been drawn to good corporate governance, globally, should also be linked to the spate of business failures in both advanced and growing economies. To this end, the collapse of Enron and WorldCom readily come to mind. The activities that would lead to good corporate governance in any business should not be taught of as the “headache” for only the board of directors and management. Other stakeholders such as institutional investors, auditors and audit committees have immense role to play in corporate governance. The paper, therefore, presents the challenges facing these stakeholders in corporate governance. It concludes that an appropriate balance should be struck among the various stakeholders in order to ensure integrity and credibility of market institutions. It recommends quality assurance auditing and discourages the outsourcing of internal audit functions to external auditors.

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