Audit Committee and Audit Report Lag: Moderating Role of Ownership Concentration of Listed Consumer Goods Firms in Nigeria (Published)
This study examines the moderating role of ownership concentration on the effect of audit characteristics on audit report lag of listed consumer goods firms in Nigeria. The ex-post facto research design was adopted, secondary data was extracted from annual reports and accounts of listed consumer goods firms in Nigeria. The population of the study is twenty-one (21) and the sample size consist of fifteen (15) for ten years (2012-2021). Six (6) companies were flitter out from the study due the technical suspension by NXG during the period of study. Census sample techniques were adopted. PCSEs regression model was employed as technique of data analysis. The findings of the study revealed that the Audit Committee Size (ACS) and Audit Committee Meeting have a positive and significant effect on Audit Report Lag (ARL). Also, the Audit Committee Financial Expertise (ACFE) revealed a positive and insignificant effect on Audit Report Lag (ARL), while the Audit Committee Independence is established to have a negative and insignificant effect on Audit Report Lag (ARL). However, with consideration of moderating role ownership concentration, the Audit Committee Size (ACS) and Audit Committee Meeting (ACM) is found to have significant negative effect on Audit Report Lag (ARL), while the Audit Committee Financial Expertise and Audit Committee Independence are found to have a positive and insignificant effect on Audit Report Lag (ARL). The study concludes that ownership concentration moderates the effect of audit committee on Audit Report Lag. The study recommended that the management of the study firms should continue to sustain the frequency of meetings and size or numbers of the committee in their respective audit committee since the two committee have been empirically proven to have significantly reduced the timeframe of reporting their financial reports.
Keywords: Audit Committee, Audit Report lag, Consumer goods firms, Nigeria, Ownership concentration
Audit Committee Characteristics and Financial Performance: A study of Listed Non-Financial Companies in Nigeria (Published)
This study examines the impact of audit committee characteristics (AC) on financial performance of listed non-financial companies in Nigeria from 2013-2020. A sample of seventy-six (76) companies listed as non-financial was drawn from the population of one hundred and thirteen (113) companies. Audited annual reports and accounts were used for data extraction. The analysis was done using descriptive statistics and multiple regressions. Explanatory research designed was adopted in the study to find out the impact of AC on financial performance. Variables used include AC proxy by ACIND, ACS and ACM as the proxies for independent variable and financial performances’ accounting and market based measures proxy by EPS and Tobin’s Q was used as the dependent variable. Robustness tests such as multicollonearity test, heteroscedasticity test, normality test and hausman specification test were conducted to validate the results. The study revealed that there is negative significant relationship ACIND and EPS, TQ and ACS has a significant relationship with EPS positively while a negative with TQ and lastly, ACM reported a positive significant relationship with EPS and a positive but not significant with TQ of listed Non-financial companies in Nigeria during the study period. Based the on the findings of the study, the study recommends that the management of the listed non-financial companies in Nigeria should ensure that AC should be made more effective by ensuring that members are made up of independent non-executive directors and the size of the AC should be optimal and lastly ensure that AC meetings are to be tailored towards relevant issues that enhance financial performance of the firm.
Keywords: Audit Committee, Board size, EPS, Tobin's Q, firm leverage, firm size
Effects of Audit Committee Expertise and Meeting on Audit Quality of Listed Consumer-Goods Companies in Nigeria (Published)
The study examines the effects of audit committee expertise and meeting on audit quality of listed consumer-goods companies in Nigeria covering a period of eleven (11) years (2006 – 2016). Longitudinal panel research design was adopted for the study. The population of the study consists of the twenty-three (23) listed consumer-goods companies on the floor of Nigerian Stock Exchange as at 31st December, 2016. The census sample size consists of fifteen (15) companies. Eight (8) companies were filtered out of which five (5) companies were listed outside the period of study and three (3) companies were without complete data. Secondary data from published annual financial statements of the sampled companies in Nigeria were used. Descriptive statistics (mean, standard deviation, minimum and maximum) and inferential statistics (correlation and multiple regression) were used for the study. The results show that audit committee expertise and meeting have positive and non significant effects on audit quality of listed consumer goods companies in Nigeria. The study concludes that audit committee expertise and meeting have no significant effect on audit quality of listed consumer-goods companies in Nigeria.
Keywords: Audit Committee, Audit Quality, Expertise, Meeting, Nigerian Stock Exchange
Do Drivers of Corporate Governance Influence shareholder Value (Published)
This study examines effect of drivers of corporate governance on shareholder value. Data from annual financial reports of listed manufacturing companies in Nigeria were analysed and tested using panel dynamic ordinary least square model and panel unit root tests. Most variables used as proxies for shareholder value responded positively to variations in audit independence while there is a non-significant effect of audit independence on all variables used as proxies for shareholder value. Board independence has a positive and non-significant effect on shareholder value whereas board size and audit size negatively and non-significantly affect shareholder value. The study further reveals that audit size, board size and board independence have negative and non-significant impact on the economic value added which represents the market value of shareholder assets. Only audit independence has a positive and non-significant impact on economic value added. Corporate governance drivers are efficacious but do not influence shareholder value significantly.
Keywords: Audit Committee, Board size, Corporate Governance, Environment, Independence, Shareholder value
Information Technology, Audit Evidence and Financial Performance of an Organization (Published)
Financial information is expected to inform its stakeholders about an organization concerning the best objective decision making options. Most financial statements appear misleading occasioned by inappropriate application of discretionary accruals which falsify financial information. It is on this note that the research was carried out to further investigate the assertion. The research design adopted seventy (70) manufacturing companies contained in the stock exchange fact book of 2013 .The basis of this selection was on companies industrial output on yearly ratings by Manufacturing Association of Nigeria (MAN). The period of study covered seven years i.e. 2007 to 2013. In the Nigerian Stock Exchange Calendar, 2007 marked the end of the period of boom in stock trading after which the stock market experienced a near collapse in the stock prices to date. Findings revealed that the combination of electronic and manual sources of evidence complemented by the audit committee oversight function have positive significant effects on the financial performance of companies. Specifically, audit committee was found to have significant impact on financial performance of the entities via effective corporate governance. In particular, boards of firms that have functional and effective audit committee appear to have effectively oversee the financial transactions of the firms, and managers generally agree to comply with the board directives as prescribed. The evidence confirmed that audit committee, when constituted mostly of independent or non-executive directors, have a restraining effect on unauthorized actions of executive managers. It was concluded that the complementary role of IT, audit evidence and audit committee, ensure effective financial disclosure and by extension the financial position of an organization. It was therefore recommended that to ensure credibility of financial statement performance, the application of IT, audit evidence and the contribution of the audit committee be handled professionally. These should also be disclosed appropriately in the financial statement.
Keywords: Audit Committee, Audit Evidence, Financial Performance, Information Technology
Effectiveness of Audit Committee Practices and the Value of Listed Deposit Money Banks in Nigeria (Published)
This research study examines the effectiveness of audit committee and as well explores the relationship between audit committee effectiveness and the value of deposit money banks in Nigeria. The followings were identified as audit committee characteristics (Internal control, the integrity of financial reporting, commitment of audit committee members and meeting) and were used in identifying the effectiveness of audit committee. Eight questions-survey questionnaires related to the four identified characteristics were administered to 55 respondents spread amongst the five sampled banks. The questionnaire enables the study to seek the perceptions of the respondents on the effectiveness of audit committee in deposit money banks in Nigeria. The Chi Square statistical tool was used to test the two study’s hypotheses. The study finds that the Characteristics of Audit Committee practices relates to the effectiveness of Audit committees’ of the deposits money banks in Nigeria, hence portraying the committee’s effectiveness in performing its functions, the effectiveness of audit committee does not necessarily improve or otherwise on the value of the deposits money banks and results also indicate that activities as relate meeting of the audit committees’ of deposit money banks are not clearly stated in the annual accounts of the banks. It therefore recommends that detail issues of meetings of audit committees be clearly stated and or included in the annual reports of the banks.
Keywords: Audit Committee, Corporate Governance, Deposit Money Banks
Effective Audit Committee, Audit Quality and Earnings Management Before and After Financial Security Law Adoption (Review Completed - Accepted)
This study examines the interaction between the effectiveness of audit committee and external audit functions to mitigate the earnings management in the Tunisian companies before and after financial security law adoption. Using 261 firm-year observations during the period 2001-2009, our results document a substitute effect between the presence of Big four auditor and effective audit committee to reducing the discretionary accruals in the Pre-law n° 2005-96 periods. We also find a link of complementary between the score of effectiveness of audit committee and industry specialist auditor to constrain earnings management. Finally, our findings show a complementary relation between the effectiveness of audit committee and audit tenure, after the passage of law n° 2005-96
Keywords: Accruals, Audit Committee, Audit Quality, Law N° 2005-96
IFRS-Based Results and the Readiness of Nigerian Audit Committee: The Professional Accounting Academic Standpoint (Published)
This study investigated the level of readiness of the audit committee towards understanding and interpreting IFRS based result in Nigeria. This study adopted the survey research method to garner opinion of stakeholders especially the professional accounting academic. One hundred and twenty copies of questionnaires were administered making forty copies of questionnaire to each of the three university studied. The questionnaires were analyzed with the use of One-Sample t-test. The study found that the presently constituted audit committee in Nigeria is statistically significantly weak in understanding and interpreting IFRS based results. It is therefore recommended as a matter of urgency that the audit committee members be subjected to training that will specifically tailored towards the application of IFRS in their various sectors and industry they represent. This training should not however, be one off. It should be continuous and in timely manner as changes in IFRS is still ongoing
Keywords: Academic, Audit Committee, Financial Report, IFRS, Professional and Nigeria
Audit Committees: The Journey So Far In Nigeria (Review Completed - Accepted)
Before 1989, there was no issues of audit committee in Nigeria. In 1989 Professor Olowokure article titled a Case for Audit Committee in Nigeria was written drawing the attention of Government, Stakeholders for the use of Audit Committee in public companies in Nigeria. Hence this was captured in the CAMA 1990 as amended Section 359 (3), it then become very important in Nigeria. The importance have led to problematic issues which resulted to why the research is been carried out.
Keywords: Audit Committee, Board Of Directors, Corporate Governance, Shareholders
Audit Committee Report in Corporate Financial Statements: Users Perception in Nigeria (Published)
This study aimed at investigating users’ perception of the inclusion of audit committee report in corporate financial statements. Questionnaires were used to elicit information from respondents. The Chi-Square statistical tool was employed in the analysis and testing of the various hypotheses raised. It was discovered that the audit committee report does not significantly affect the quality of financial reporting although some users consider it in their decision making process. Hence, it is recommended that it should not be a compulsory report so as to reduce cost, waste and make the financial statement brief yet weighty and relevant.
Keywords: Audit Committee, Corporate Financial Statement