AUDIT COMMITTEE CHARACTERISTICS AND FINANCIAL REPORTING QUALITY OF QUOTED INDUSTRIAL GOODS FIRMS IN NIGERIA

ABSTRACT Despite the regulatory frameworks and guidelines established to enhance financial reporting quality, discrepancies and shortcomings in financial disclosures continue to undermine investor confidence and the integrity of financial statements. This has raised questions about the effectiveness of corporate governance mechanisms, particularly the role of audit committees in ensuring high-quality financial reporting. Based on this, the study, audit committee characteristics and financial reporting quality of quoted industrial goods firms in Nigeria, covering, 2012 to 2023. The population consists all the 13 quoted industrial goods firms in Nigeria as at 31st December, 2023 while filtering criteria was used to arrive at a sample size of ten (10) industrial goods firms in Nigeria. The hypotheses were tested using the logistic regression model after conducting some diagnostics tests. The result showed that audit committee financial expertise has a significant positive effect on audit quality of quoted industrial goods firms in Nigeria. However, the results further showed that audit committee frequency of meeting and audit committee gender diversity have insignificant positive effects on audit quality of quoted industrial goods firms in Nigeria. The study recommended among others, that quoted industrial goods firms in Nigeria should establish and adhere to a robust schedule of regular audit committee meetings. These meetings should be structured to facilitate timely discussions on critical financial and audit-related issues. Furthermore, firms should evaluate the agenda and effectiveness of these meetings to ensure that they contribute positively to enhancing audit quality. The study also recommended that industrial goods firms in Nigeria should ensure that their audit committees comprise members with relevant financial expertise. Firms should prioritize appointing individuals with strong backgrounds in finance, accounting, or auditing to the audit committee.

0 19 May, 2026

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