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

---

Author: Umar A. A.

Abstract

The prevalence of unethical practices and associated challenges within the Nigerian banking industry has underscored the need to examine the role of audit committee characteristics in enhancing financial reporting quality. This study investigates the relationship between audit committee characteristics and financial reporting quality among listed deposit money banks in Nigeria. The research covers a sample of twelve (12) listed deposit money banks whose audited financial statements were publicly available for the period 2017 to 2022. The sampled banks include Access Bank Plc, Fidelity Bank Plc, First Bank of Nigeria Holdings Plc, Guaranty Trust Holding Company Plc, Union Bank of Nigeria Plc, United Bank for Africa Plc, Zenith Bank Plc, Ecobank Nigeria Plc, Polaris Bank Limited, Stanbic IBTC Holdings Plc, Sterling Bank Plc, and Wema Bank Plc. The study examines the following audit committee characteristics: financial reporting quality (FRQ), audit committee size (ACSZ), audit committee independence (AUID), audit committee meetings (ACMT), audit committee shareholding (ACSH), and audit committee expertise (ACXT). Findings indicate that AUID, ACMT, and ACXT have a significant negative association with FRQ. ACSZ and ACSH, on the other hand, show an insignificant negative relationship with FRQ. Overall, the results suggest that the current structure and functioning of audit committees in the sampled banks are not effectively enhancing financial reporting quality. The study recommends a comprehensive review of audit committee composition and operational dynamics in Nigerian deposit money banks to strengthen corporate governance mechanisms and improve the credibility and reliability of financial reporting across the sector.

Keywords: Audit Committee, Financial Reporting, Deposit Money banks and Characteristics

2025 - NIJAF - 17 - 109 Umar A. A..pdf

Download PDF • 426KB