Original Research Article | OPEN ACCESS

Audit Committee Attributes and the Financial Reporting Quality of Listed Deposit Money Banks in Nigeria

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Received: March 20 2022        Accepted: June 28 2022        Published: June 30 2022

Citation: Audit Committee Attributes and the Financial Reporting Quality of Listed Deposit Money Banks in Nigeria. Account Tax Rev 2007; 6(2):31-46 doi:

© 2007 The authors.
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Abstract

The purpose of this study is to investigate the influence of audit attributes on the financial reporting quality of twelve (12) listed Deposit Money Banks in Nigeria from 2012 to 2018. The study used a correlational research design. As a data analysis approach pooled OLS regression was employed. Audit committee independence, audit committee expertise, and audit tenure were employed as proxies for audit attributes, whereas financial reporting quality was utilized as a dependent variable in Nigeria utilizing discretionary accrual (DMBs). The study's population consists of fourteen (14) listed DMBs, whereas the adjusted population consists of twelve (12) listed DMBs. Panel data were extracted from the financial report based on the Modified Jones model. The panel data regression results demonstrated that audit committee independence and audit committee expertise had a favourable and significant impact on the financial reporting quality of Nigerian listed DMBs. As a result of the study's findings, audit committee independence and audit committee expertise have a significant propensity to enhance financial reporting quality. By the findings, the research suggests that bank regulators consider mandating professional qualifications, as proposed by the FRCN in the 2016 draft of the suspended NCCG, to improve the audit committee's expertise and diligence. It also suggests that audit committee independence should be focused on how to guarantee financial reporting quality properly reflects the honest and fair picture of the financial report to avoid misleading all of the consumers across the globe of accounting information.

Keywords: Audit attribute, audit committee independence, audit committee expertise, audit tenure and financial reporting quality