DOI: 10.36347/sjebm.2015.v02i09.002

Pages: 908-913

This paper examines the principal methods of sophisticated computer auditing and sets out the relationship between computer technology and the effectiveness of audit firm in Nigeria using five (5) manufacturing company such as Nestle Nigeria plc, Seven Up Bottling Company, Cadbury Nigeria plc, Guinness Nigeria plc and Coca-Cola Nigeria plc. The research arose due to inefficiency among audit firms in other to improve the financial accountability of some organization in Nigeria. The main objectives of the study were to establish the relationship and the application of computer technology by audit firms. The researcher used descriptive and analytical research design. Data was collected using primary source. The study revealed that the majority of the audit firms used computer applications (CAATS) in auditing and that if individuals who effectively understand these applications are involved in auditing, the effectiveness of these audit reports would be reflecting a true and fair view of the statement. This implies that more efforts should be attributed to computer auditing because it influences the effectiveness of audit firms to a large extent as compared to other factor. Consequently, recommendations on the firms should ensure that computer audit is engaged to monitor, check and verify audit process. There should be establishment of standard audit committee for effective control of firms’ activities through computer audit.