MODERATING EFFECT OF AUDIT COMMITTEE MEETING FREQUENCY ON AUDITOR CHARACTERISTICS AND EARNINGS MANAGEMENT OF QUOTED FINANCIAL FIRMS IN NIGERIA

Abstract This study examines the moderating effect of audit committee meeting frequency on the relationship between auditor characteristics (audit tenure and audit firm size) and earnings management of quoted financial firms in Nigeria. Given the persistent challenges of financial reporting credibility and governance lapses in Nigeria’s financial sector, the study aims to assess whether the oversight role of audit committees—measured by the frequency of their meetings—enhances or weakens the effectiveness of auditor characteristics in curbing earnings management. The study used a panel research design while the population consists of 45 quoted financial firms in Nigeria. The study used secondary data extracted from the audited financial statements of sampled 32 listed financial firms over a 13-year period (2012–2024). The analysis is conducted using fixed effect regression models, with robustness checks including normality, multicollinearity and heteroscedasticity tests. The findings revealed that audit tenure has a negative but statistically insignificant effect on earnings management, while audit firm size has a significant negative effect. However, audit committee meeting frequency does not significantly moderate the relationship between either audit tenure or audit firm size and earnings management. The study recommends that quoted financial firms in Nigeria are encouraged to engage the services of larger and more reputable audit firms. These firms have the capacity to deliver high-quality audits that deter earnings management. Management should prioritize audit quality over cost when selecting external auditors. The study also recommends a shift from merely frequent audit committee meetings to enhancing their effectiveness through capacity building, professional expertise, and strategic engagement with external auditors.

0 19 May, 2026

pg: 15

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