AUDIT COMMITTEE ATTRIBUTES AND FINANCIAL REPORTING QUALITY OF LISTED DEPOSIT MONEY BANKS IN NIGERIA

Abstract

Audit committee attributes have attracted significant attention within the accounting profession due to stakeholders’ growing demand for reliable and high-quality financial reporting. This study examined the effect of audit committee characteristics on the financial reporting quality of listed deposit money banks in Nigeria using an ex- post facto research design. Secondary data were obtained from the annual reports of 15 selected deposit money banks over a 10-year period (2015–2024). Panel data regression techniques, using fixed effects model is employed for the analysis. The findings reveal that Audit committee expertise and Audit committee Independence have a significant positive effect on financial reporting quality. Although audit committee gender diversity shows a positive relationship with financial reporting quality, the effect is not statistically significant. Overall, the results suggest that audit committee expertise, Audit committee independence, and Audit committee gender diversity are key determinants of financial reporting quality. The study recommends that audit committees should be composed predominantly of directors with strong financial management expertise to enhance oversight functions and ensure the preparation of high-quality financial reports with minimal discretionary accruals.