Audit committee characteristics and financial reporting quality in Nigeria : the mediating effect of audit quality (original) (raw)
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Audit Committee Financial Expertise: Antidote for Financial Reporting Quality in Nigeria
Audit committee financial expertise is vital to the quality of financial reporting. This study empirically investigates the impact of audit committee financial expertise on the quality of financial reporting. The financial reporting quality was measured by reliability (total accrual quality) and relevance (audit report lag). Fifteen money deposit banks were selected and data was collected for the period (2003)(2004)(2005)(2006)(2007)(2008)(2009)(2010)(2011)(2012). Analyses were carried out using Correlation, Ordinary Least Square and Panel Lest Square. The study found, after controlling for firm size, audit type, age of firm, audit committee meeting and audit committee size, that, audit committee financial expertise showed a negative coefficient for total accrual quality and audit report lag. This means financial expertise has a positive significant impact on financial reporting quality in Nigeria. The study, therefore, recommends that more attention should be given to the financial expertise of directors being recommended to the audit committee.
The Role of Audit Committee in Enhancing Financial Reporting In Nigeria
IOSR Journal of Business and Management, 2013
This research paper is centered on the role of Audit committee in enhancing financial reporting in Nigeria which has now become a very important issue in the accounting profession in light of the various accounting scandals. The objectives of this research is to examine the extent to which the inclusion of the audit committee report in the financial statement significantly affects the quality of financial reporting, examine the extent to which the qualification of audit committee member affects its report and examine the extent to which audit committee multiple directorships affect the function of the committee. To answer the research question put forward in this paper sample size of 50 respondents was selected. The data was analyzed using the Z-Test with the computer software known as SPSS and it was found out that audit committee report in the financial statement significantly affects the quality of financial reporting, the qualification of audit committee members, according to users' perception, adds to the quality of the financial statement and Audit committee multiple directorship have positive effect on the function of the audit committee. It was concluded that the importance of audit committee is immerse and as such stakeholders of public limited companies should take extra care in setting up the committee.
Objective of the study is to examine the relationship between audit committee characteristics, board characteristics and financial reporting quality in the Nigerian banking sector. A sample of nine banks was selected using the simple random sampling technique. Data for the selected banks were analyzed by employing ordinary least square regression technique. The period under review is ten years. The result of the study shows there is positive relationship between audit committee meetings and financial reporting quality. The study also shows that there is a negative relationship between board composition financial reporting quality .However the study revealed that there is no significant relationship between board size, board expertise and financial reporting quality. The study recommended that Apex bank should mandate audit committee of banks to meet at least four times in an accounting year.
2017
The purpose of this study is to evaluate the effect of Audit Committee Qualities on Financial Reporting of listed companies in Nigeria. The study used structured questionnaires administered to a sample of 145 administrative staff of selectedlisted companies located in Rivers State, Nigeria to elicit the required data for hypothesis testing. The statistical technique employed in testing and analysing the hypothesis was the Ordinary Least Square regression analysis to accurately establish the effect of the dependent and independent variables with the aid of version 17.0 of the Statistical Package for Social Sciences (SPSS) computer software. Results of the analyses suggested that audit committee independence, audit committee members' qualification and audit committee monitoring function have a significant and positive effect on financial reporting of listed firms in Nigeria. The study provides evidence to shareholders that qualification of audit committee members should be considered seriously during their appointment to improving the quality of financial reporting and achieving audit committee members' independence. Moreover, the result highlights the need for companies to organise training for audit committee members in the areas where in-depth knowledge is required especially on the application of new accounting standards which will aid financial reporting process of the company. The paper creates awareness on the need for identifying monitoring functions that are vulnerable to manipulation for critical analysis and intensive review in those areas.
Audit Committee Quality and Financial Reporting in Deposit Money Banks in Nigeria
Asian Economic and Financial Review, 2021
The credibility of financial reporting is crucial as it assures the user of its authenticity. In this study, we examined the effect of audit committee quality on the quality of financial reporting of deposit money banks in Nigeria. A descriptive research design was adopted and secondary data sourced from annual accounts of seven deposit money banks for seven years were used to test our hypotheses. The dependent variable in this study is financial reporting quality measured with accrual model. In contrast, the independent variables are the number of members on the audit committee with accounting and finance knowledge, the size of the audit committee, the number of audit committee meetings held in a year and audit committee independence. Descriptive statistics, normality test, a multicollinearity test and regression analysis were used to examine the data. A notable outcome revealed that except for several audit committee meetings held in a given year the other independent variables were found to be insignificant and are not, therefore, determinant of financial reporting quality in deposit money banks in Nigeria. The study concluded that audit committee quality is not a determinant of financial reporting quality in deposit money banks in Nigeria and the study recommends that ability should be paramount for the appointment of members to the audit committee and advises that the audit committee should always be given adequate consideration by management in decision making. Contribution/Originality: This study is one of very few that has investigated the effect of audit committee quality on the quality of financial reporting of deposit money banks in Nigeria using an accrual model.
Impact of Audit Committee Attributes on Financial Reporting Quality in Nigerian Quoted Companies
2016
The objective of this study is to evaluate the impact of Audit Committee on financial reporting quality in Nigerian quoted companies. Data for the study were derived from annual reports of one hundred and thirty- one (131) companies quoted on the Nigerian Stock Exchange for the periods, 2006 to 2012. The data were analyzed using descriptive statistics as well as correlation and Ordinary Least Squares (OLS) regression. The multivariate regression technique was utilized to estimate the model. Using the panel regression estimation results, we found that each of the identified audit committee attributes, such as: frequency of meetings, financial literacy, independence, size and attendance at meetings had a positive significant effect on financial reporting quality. Based on these findings, the paper recommends the need for training and seminars to be organized for members of audit committee with a view to enabling them keep abreast of up to date information as regards their roles and re...
IOSR-JOURNAL OF BUSINESS AND MANAGEMENT, 2021
The study interrogated the audit committee characteristics and quality of financial statement of thirteen (13) consumable firms quoted on the Nigerian Stock Market using the Ex-post facto research design. The study gathered data from the NSE factbook and financial reports published by the quoted companies covering from (2010-2018). The data were analyzed using the Descriptive statistics, Panel Correlation Matrix, Ordinary Least Square (OLS), and Hausman test. The dependent variable Quality of Financial Statement was measured using the Beneish M-score model while the independent variable was measured using audit committee financial expert, audit committee size, audit committee independent, audit committee. From the analytical output, the result showed that audit committee financial expert and Audit committee size has a positive relationship and insignificant to the quality of financial statement. Also, audit committee independent and audit committee has a negative relationship with quality of financial statement. The study recommends that the audit committee members should consist of the independent non-executive director with sound accounting know-how.
2017
The purpose of this study is to evaluate the effect of Audit Committee Qualities on Financial Reporting of listed companies in Nigeria. The study used structured questionnaires administered to a sample of 145 administrative staff of selected listed companies located in Rivers State, Nigeria to elicit the required data for hypothesis testing. The statistical technique employed in testing and analysing the hypothesis was the Ordinary Least Square regression analysis to accurately establish the effect of the dependent and independent variables with the aid of version 17.0 of the Statistical Package for Social Sciences (SPSS) computer software. Results of the analyses suggested that audit committee independence, audit committee members qualification and audit committee monitoring function have a significant and positive effect on financial reporting of listed firms in Nigeria. The study provides evidence to shareholders that qualification of audit committee members should be considered ...