The Effect of Audit Committee Characteristics on Audit Quality of Listed Oil and Gas Firms in Nigeria

ABSTRACT
The study examined the effect of audit committee characteristics on audit quality of listed oil and gas firms in Nigeria. The specific objectives of the study are; to examine the extent to which audit committee size affect audit quality, to determine the effect of audit committee meetings on audit quality and to determine the effect of audit tenure on audit quality of listed oil and gas firms in Nigeria. Ex-post facto research design was adopted.
Secondary data was used through the use of annual reports and accounts of the selected oil and gas firms in Nigeria. The population of the study is made up of all the oil and gas firms listed in Nigeria stock exchange, while the sample size is made up of 8 oil and gas firms in Nigeria after adopting the non-probability sampling method. Data was analyzed using panel data regression analysis. The finding revealed that Audit Committee Characteristics components (Audit committee size, Audit committee Meeting and Audit Tenure) have significant effect on Audit Quality of listed oil and gas firms in Nigeria. The study concludes that audit committees play a crucial role in ensuring the reliability and integrity of financial reporting through their oversight of the audit process. The study recommends that firms should ensure compliance with applicable regulatory requirements and governance standards regarding audit committee size, composition, and responsibilities. The study also recommends that firms should increase the frequency of audit committee meetings to ensure regular oversight of audit processes and financial reporting. Since it indicates that more frequent meetings allow for timely review of audit findings, discussion of emerging issues, and proactive resolution of potential discrepancies.