Relationship Between Audit Committee Characteristics and Audit Quality of Deposit Money Banks in Nigeria

• Post by: airjournal
• September 7, 2022
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The study examined the relationship between audit committee characteristics and audit quality of deposit money banks in Nigeria. The study’s specific objectives were to ascertain the relationship between audit committee size, audit committee meetings, audit committee expertise, and audit fees of deposit money banks in Nigeria. audit committee size, meetings, and expertise proxied audit committee characteristics, while audit fees were used to proxy audit quality. The study adopted an ex-post-facto research design, covering the period between 2010 and 2019. Secondary data were extracted from Nigeria’s annual reports and accounts of sampled deposit money banks. Panel covariance techniques were used for data analysis. In line with the specific objectives of the study, the covariance analysis result reveald that audit committee size has a positive and strong relationship with the audit quality of deposit money banks in Nigeria. However, audit committee meetings and audit committee expertise have a positive and weak relationship with the audit quality of deposit money banks in Nigeria. The implication of the findings is that only audit committee size among the audit committee characteristics can be used to predict the audit quality of deposit money banks in Nigeria. The study, therefore, recommends that deposit money banks in Nigeria should maintain their audit committee size since it positively affects audit quality of the banks. They should also increase the number of times they meet during the financial year, and ensure that truancy is eradicated. Deposit money banks should inaugurate more accounting experts into the audit committee. This will go a long way in increasing the audit quality because of the accounting and audit knowledge of the board members.

Keywords: Audit Committee Characteristics; Deposit Money Banks; Audit Quality

Authorship: Ezeugo, C. C., Prof. Uche B. U., Yawai, G. and Ebisi, L. N. | FULL PDF