Audit Committee Characteristics and Quality of Financial Reporting of Quoted Consumer Sector Firms in Nigeria

Abstract

This study interrogated audit committee characteristics and quality of financial reporting nexus of thirteen (13) consumer sector firms quoted on the Nigerian Stock Market using ex-post facto research design. The study gathered data from the NSE fact book and financial reports published by the sample quoted companies covering the period 2008 to 2020. The data were analyzed using the descriptive statistics, Panel Correlation Matrix and Ordinary Least Square. The dependent variable quality of financial reporting was measured using the Beneish M-score model while the independent variable audit committee characteristics was measured using audit committee members’ financial expertise, audit committee size, audit committee independence and number of audit committee meetings. The results the analysis provided evidence to show that audit committee members’ financial expertise and audit committee meetings have non-significant positive relationship with quality of financial reporting. Also, audit committee independence and audit committee size have negative relationship with quality of financial reporting. The study recommends that audit committee members of listed consumer sector firms should consist of the independent non-executive directors with sound accounting know-how.