Determinants of demand and supply of accounting and audit services in SMEs: Evidence from Nigeria
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Date
2015
Authors
Adeyemi, Semiu Babatunde
Udofia, Ini Etete
Obah, Sunday
Journal Title
Journal ISSN
Volume Title
Publisher
Journal of Accounting and Management Information Systems, Bucharest University of Economic studies
Abstract
The study investigated the factors that determine the demand and supply
of accounting and audit services in small and medium enterprises (SMEs), with
evidence from Lagos, Nigeria. It also sought to know whether accounting and audit
services contribute to the success of SMEs. The study made use of survey design.
Using a structured questionnaire, evidence was collected from 380 respondents
comprising of 300 SME owner-managers and 80 accounting firms. The data collected
were analysed using both the descriptive and inferential statistics. The research
findings indicated that owner-managers’ characteristics, legal structure, education of
managers, possession of accounting skills by managers and capital structure influence
demand, while legal structure, attitude towards marketing, Government policy and
owner-managers’ characteristics influence supply of accounting and audit services.
Findings also indicated that services of accountants and auditors have significant
influence on the success of SMEs. The study recommended that owner-managers of
SMEs should be given proper orientation on the importance of accounting and audit
services to the success of their business. It was also recommended that Government
should make the preparation and filing of audited accounts of SMEs mandatory,
especially in order to render financial assistance to SMEs with a view to enhancing
their socio-economic relevance. Accountants were also advised to take their services to
the SMEs rather than waiting for the SME owner-managers to voluntarily call for their
services.
Description
Keywords
SMEs, accounting and auditing services, theory of inspired confidence, agency theory, Nigeria