IMPACT OF AUDIT COMMITTEE ATTRIBUTES ON FINANCIAL REPORTING QUALITY IN NIGERIAN QUOTED COMPANIES
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A Publication of The Institute of Chartered Accountants of Nigeria
Abstract
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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 responsibilities, to make them more
effective and efficient in their assignments. In addition, the Securities and Exchange Commission
of Nigeria should put in place a regulation, which ensures that audit committee members maintain
at least, an attendance level of 85%, for them to be retained in the audit committee for the following
financial year
Keywords
HF Commerce, HF5601 Accounting