Auditor Industry Specialization in Nigeria

professional Accounting Bodies have of recent called on audit firms to specialize in industries where their clients operate. This paper examines __ industries of companies listed on the Nigerian Stock Exchange for the year 2009 to determine if there is evidence ofauditor industty specialization. The sample consists of 87 companies from five industries; Building Materials and Construction, Banking, Food and Beverages and Tobacco, Healthcare and Insurance. The data were analyzed using simple percentages and Industiy specialization is defined as audit firms that are market leaders with at least 30% of market share based on number of clients. The findings show that there is auditor industry specialization in Nigeria with PricewaterhouseCoopers (PWC) being a specialist in the banking industry while Akintola Williams Deliotte specializes in three industries; Building and Construction, Food and Beverages and Tobacco and also Healthcare. KPMG and Ernst Young do not specialize in any of the industries. Findings also indicate that the Insurance industry has no specialist. It is recommended that local audit firms should merge with the International audit firms so as to enhance their reputation and be able to cover other industries such as insurance sector in Nigeria.