Examination of the relationship between audit committee characteristics and financial reporting quality of Nigerian Deposit banks

Thisstudy investigates the effects of audit committee characteristics on thequality of financial reporting by deposit banks in Nigeria. The study employs amultivariate regression analysis to assess the aggregate and individual effectof certain audit committee characteristics on financial reporting of samplebanks. The study documents a positive relationship between audit committeeindependence and quality of financial reporting. Findings also revealed thataudit committee expertise has positive effect on the quality of financialreporting. Results demonstrate that audit committee size has an insignificanteffect on quality of financial reporting; however, an aggregate significanteffect of audit committee characteristics on financial reporting quality wasestablished. The recommendations from this study highlight the need forfinancial expertise as a means of strengthening the monitoring and oversightrole that the audit committee plays in financial reporting. Also, emphaticconsiderations should be given to audit committee independence as a key factorfor ensuring the credibility of financial reports