THE EFFECT OF AUDIT COMMITTEE CHARACTERISTICS ON CREDIBILITY OF EXTERNAL AUDITORS’ REPORTS OF LISTED BANKS IN NIGERIA

THE EFFECT OF AUDIT
COMMITTEE CHARACTERISTICS
ON CREDIBILITY OF EXTERNAL
AUDITORS’ REPORTS OF
LISTED BANKS IN NIGERIA
Ekaruwe Moses
Department Of Accounting
Delta State Polytechnic,
Otefe - Oghara
mosbeyy@Gmail.Com
&
M.C. Okafor
Michael Okpara University of Agriculture,
Umudike
&
M.C. Ekwe
Michael Okpara University of Agriculture,
Umudike
ABSTRACT
The study examined effect of audit
committee characteristics on credibility of
auditors’ report using quoted commercial
banks on Nigeria Stock Exchange for the
periods, 2006-2017. The independent
variables for the study include audit
committee financial expertise, audit
committee
independence,
auditBook of Abstract
committee meetings and audit committee
size whilst earning quality forms the
dependent variable. Using a panel unit
regression, the study finds that audit
committee characteristics had positive
significant effect on earnings quality of
listed commercial banks in Nigeria. The
study recommends that the regulatory
bodies may consider putting in place a
regulation that will ensure that all audit
committee members have proven
experience in financial and accounting
matters. Also, they should have a
minimum meeting attendance rate of 85%
per member.
Key words: Audit Committee
Characteristics, Auditor Report,
Commercial Banks, Panel Regression,
Nigeria.

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