Effect of Audit Committee on Financial Reporting Quality in Listed Industrial Goods Firms in Nigeria

ABSTRACT This study examines the impact of audit committee on financial reporting quality of listed industrial goods firms in Nigeria, which has been an unsolved problem in the field of financial management. The study use the annual report obtained from the website of the Nigerian exchange group (NGX), 13 firms was used as a sample size while the data of the study covers the period of 2013-2023. The correlation coefficients between DACC and various audit committee attributes (ACS, ACI, and ACE) are weak, indicating no strong relationships between these variable. These results suggest that audit committee size, independence, and meetings may be associated with discretionary accruals, but the relationships are not strong. The findings reveal that audit committee size, independence, and expertise have significant impacts on financial reporting quality. The findings have implications for policymakers, regulators, and corporate governance practitioners seeking to improve financial reporting quality in Nigeria. The study concludes that effective audit committee characteristics are crucial for enhancing financial reporting quality in listed industrial goods firms in Nigeria. The study recommends that firms should ensure that their audit committees are composed of independent members and consider increasing the size of their audit committees to improve financial reporting quality.