AUDIT COMMITTEE AND FINANCIAL REPORTING QUALITY: THE MODERATING EFFECT OF BOARD INDEPENDENCE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA

Authors

  • Kassim Yusha’u Shika Nuhu Bamali Polytechnic Zaria, Kaduna State, Nigeria
  • Mark David Kantiyok Nuhu Bamalli Polytechnic, Zaria

DOI:

https://doi.org/10.57233/gujaf.v3i3.184

Keywords:

Discretionary Loan Loss Provision, Financial Reporting Quality, Audit Committee Attributes, Deposit Money Banks

Abstract

The widely publicized corporate accounting scandals perpetrated under the watchful eye of audit committee despite their roles and function-ns in financial reporting processes, casts doubt in the minds of users on its relevance and credibility. This study examines the moderating role of board independence on the relationship between audit committee and financial reporting quality of listed Nigerian deposit money banks from 2012 to 2021. The study utilized correlation research design, extracted secondary data and OLS multiple regression for analysis. The finding reveals that board independence has a significant negative moderating effect on audit committee characteristics and financial reporting quality represented by discretionary loan loss provision, thereby strengthen the nexus. Based on the findings, the study recommends the appointment of more outside directors, holding strategic regular meeting and appointment of members with financial expertise into the audit committee to guarantee independence, assure discussion and handling of complex financial issues which would improve the financial reporting quality.

Author Biographies

Kassim Yusha’u Shika, Nuhu Bamali Polytechnic Zaria, Kaduna State, Nigeria

Department of Accounting,
Nuhu Bamalli Polytechnic, Zaria

Mark David Kantiyok, Nuhu Bamalli Polytechnic, Zaria

Department of Accounting,
Nuhu Bamalli Polytechnic, Zaria

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Published

2023-05-09

How to Cite

Shika, K. Y., & Kantiyok, M. D. (2023). AUDIT COMMITTEE AND FINANCIAL REPORTING QUALITY: THE MODERATING EFFECT OF BOARD INDEPENDENCE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA. Gusau Journal of Accounting and Finance, 3(3), 35. https://doi.org/10.57233/gujaf.v3i3.184