Audit Committee’s Attributes and Quality of Financial Reporting on Listed Consumer Goods Firms in Nigeria
Year: 2024
Type: article
Abstract: Confidence of the community in general and the investment community in particular in theaccuracy of the Nigerian companies' financial reports has decreased due to the repeateddocumentation of accounting manipulations in financial statements. This has led to businesstakeovers and collapse. The prevalence of takeovers and or collapse has caused significantconcern about how well corporate governance procedures guarantee the preparation anddisclosure of more effective accounting records. Therefore, this study examined the effects of auditcommittees’ attributes on the quality of financial reporting of listed consumer goods firms inNigeria. The data for the study was obtained from the annual reports of the sample of sixteenconsumer goods firms listed for the period 2009 to 2022. The data was analyzed using fixed effectregression analysis after conducting the Hausman test and the Breusch-Pagan test. The studyfound that audit committees independence (ACI), audit committees’ size (ACS), and shareholdersinvolvement in the committees (SIAC) have a considerable tendency to enhance the standard ofpublished financial information of Nigerian consumer goods businesses that are listed. The studyconcluded that the audit committee affects the quality of the financial statements of listed consumergoods companies in Nigeria. To maintain an effective oversight function and foster a positiveenvironment for the legally required audit that promotes a reliable and unbiased perspective ofthe financial information, this study proposed that the governing board of executives guaranteethe nomination of appropriate audit committee members who have adequate financial skills,including shareholders.
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W6998833446
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