Audit Committee Financial Expertise: Antidote for Financial Reporting Quality in Nigeria?
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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 (2003-2012). 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.
Keywords
H Social Sciences (General)