AUDIT COMMITTEE’S ATTRIBUTES AND QUALITY OF FINANCIAL REPORTING ON LISTED CONSUMER GOODS FIRMS IN NIGERIA
Confidence of the community in general and the investment community in particular in the accuracy of the Nigerian companies' financial reports has decreased due to the repeated documentation of accounting manipulations in financial statements. This has led to business takeovers and collapse. T...
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| Format: | Article |
| Language: | English |
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Kwara State University, Malete Nigeria
2024-10-01
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| Series: | Malete Journal of Accounting and Finance |
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| Online Access: | https://majaf.com.ng/index.php/majaf/article/view/151 |
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| author | Idris Kayode MUHAMMED Ganiyu ABDULYAKEEN Kate Theophilus AJIDE Kolapo Olufemi OYALEKE |
| author_facet | Idris Kayode MUHAMMED Ganiyu ABDULYAKEEN Kate Theophilus AJIDE Kolapo Olufemi OYALEKE |
| author_sort | Idris Kayode MUHAMMED |
| collection | DOAJ |
| description |
Confidence of the community in general and the investment community in particular in the
accuracy of the Nigerian companies' financial reports has decreased due to the repeated
documentation of accounting manipulations in financial statements. This has led to business
takeovers and collapse. The prevalence of takeovers and or collapse has caused significant
concern about how well corporate governance procedures guarantee the preparation and
disclosure of more effective accounting records. Therefore, this study examined the effects of audit
committees’ attributes on the quality of financial reporting of listed consumer goods firms in
Nigeria. The data for the study was obtained from the annual reports of the sample of sixteen
consumer goods firms listed for the period 2009 to 2022. The data was analyzed using fixed effect
regression analysis after conducting the Hausman test and the Breusch-Pagan test. The study
found that audit committees independence (ACI), audit committees’ size (ACS), and shareholders
involvement in the committees (SIAC) have a considerable tendency to enhance the standard of
published financial information of Nigerian consumer goods businesses that are listed. The study
concluded that the audit committee affects the quality of the financial statements of listed consumer
goods companies in Nigeria. To maintain an effective oversight function and foster a positive
environment for the legally required audit that promotes a reliable and unbiased perspective of
the financial information, this study proposed that the governing board of executives guarantee
the nomination of appropriate audit committee members who have adequate financial skills,
including shareholders.
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| format | Article |
| id | doaj-art-36b278c1c3dc4339b88286a48f2cd56f |
| institution | Kabale University |
| issn | 2735-9603 |
| language | English |
| publishDate | 2024-10-01 |
| publisher | Kwara State University, Malete Nigeria |
| record_format | Article |
| series | Malete Journal of Accounting and Finance |
| spelling | doaj-art-36b278c1c3dc4339b88286a48f2cd56f2025-02-11T23:08:08ZengKwara State University, Malete NigeriaMalete Journal of Accounting and Finance2735-96032024-10-0142AUDIT COMMITTEE’S ATTRIBUTES AND QUALITY OF FINANCIAL REPORTING ON LISTED CONSUMER GOODS FIRMS IN NIGERIAIdris Kayode MUHAMMED0Ganiyu ABDULYAKEEN1Kate Theophilus AJIDE2Kolapo Olufemi OYALEKE3Federal Polytechnic Offa, Kwara StateFederal Polytechnic Offa, Kwara StateFederal Polytechnic Offa, Kwara StateFederal Polytechnic Offa, Kwara State Confidence of the community in general and the investment community in particular in the accuracy of the Nigerian companies' financial reports has decreased due to the repeated documentation of accounting manipulations in financial statements. This has led to business takeovers and collapse. The prevalence of takeovers and or collapse has caused significant concern about how well corporate governance procedures guarantee the preparation and disclosure of more effective accounting records. Therefore, this study examined the effects of audit committees’ attributes on the quality of financial reporting of listed consumer goods firms in Nigeria. The data for the study was obtained from the annual reports of the sample of sixteen consumer goods firms listed for the period 2009 to 2022. The data was analyzed using fixed effect regression analysis after conducting the Hausman test and the Breusch-Pagan test. The study found that audit committees independence (ACI), audit committees’ size (ACS), and shareholders involvement in the committees (SIAC) have a considerable tendency to enhance the standard of published financial information of Nigerian consumer goods businesses that are listed. The study concluded that the audit committee affects the quality of the financial statements of listed consumer goods companies in Nigeria. To maintain an effective oversight function and foster a positive environment for the legally required audit that promotes a reliable and unbiased perspective of the financial information, this study proposed that the governing board of executives guarantee the nomination of appropriate audit committee members who have adequate financial skills, including shareholders. https://majaf.com.ng/index.php/majaf/article/view/151Audit CommitteeDiscretionary Accrual ModelEarning ManagementFinancial Reporting Quality |
| spellingShingle | Idris Kayode MUHAMMED Ganiyu ABDULYAKEEN Kate Theophilus AJIDE Kolapo Olufemi OYALEKE AUDIT COMMITTEE’S ATTRIBUTES AND QUALITY OF FINANCIAL REPORTING ON LISTED CONSUMER GOODS FIRMS IN NIGERIA Malete Journal of Accounting and Finance Audit Committee Discretionary Accrual Model Earning Management Financial Reporting Quality |
| title | AUDIT COMMITTEE’S ATTRIBUTES AND QUALITY OF FINANCIAL REPORTING ON LISTED CONSUMER GOODS FIRMS IN NIGERIA |
| title_full | AUDIT COMMITTEE’S ATTRIBUTES AND QUALITY OF FINANCIAL REPORTING ON LISTED CONSUMER GOODS FIRMS IN NIGERIA |
| title_fullStr | AUDIT COMMITTEE’S ATTRIBUTES AND QUALITY OF FINANCIAL REPORTING ON LISTED CONSUMER GOODS FIRMS IN NIGERIA |
| title_full_unstemmed | AUDIT COMMITTEE’S ATTRIBUTES AND QUALITY OF FINANCIAL REPORTING ON LISTED CONSUMER GOODS FIRMS IN NIGERIA |
| title_short | AUDIT COMMITTEE’S ATTRIBUTES AND QUALITY OF FINANCIAL REPORTING ON LISTED CONSUMER GOODS FIRMS IN NIGERIA |
| title_sort | audit committee s attributes and quality of financial reporting on listed consumer goods firms in nigeria |
| topic | Audit Committee Discretionary Accrual Model Earning Management Financial Reporting Quality |
| url | https://majaf.com.ng/index.php/majaf/article/view/151 |
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