IMPACT OF ACCOUNTING AND AUDIT SERVICE FOR SMALL AND MEDIUM SCALE ENTERPRISES’ PERFORMANCE

Abstract

Small businesses are important to the Nigerian economy. As a developing economy, the investment of vast wealth and resources in small businesses and the auditing of their business are very crucial to the financial growth and prosperity of the economy. The aim of this study is to determine the impact of accounting and audit service on Small and Medium scale Enterprise in Ogun State using a sample of small businesses and audit firms. Data used for this study were obtained from primary source through the administration of one hundred questionnaires (150) to small and medium scale operator   out of which One hundred and twenty (120) questionnaires were recovered. The respondents were selected using random sampling technique. The study employed Chi square and ordinary Probit Regression analysis in investigate the impact of accounting and audit services on small and medium scale enterprises in ijebu ode local government areas. The study recommended that Small and medium scale enterprises should be encouraged to adopt sound accounting system and the cost of installing and operating such systems should be minimized. And also, accounting systems should bear relevance to the size and needs of small and medium scale enterprises and Accountants involved in the audit of small and medium scale enterprises should adopt methodologies that adequately capture the accounting and reporting needs of the enterprises and comment on their peculiarities, if necessary, in the audit report.