Audit Committee Attributes and Quality of Financial Reporting in Nigerian Oil and Gas Companies
Olugbenga JINADU
Department of Accounting, Achievers University, Owo, Ondo State, Nigeria.
Abiodun Joshua FAGBOYE
Department of Accounting, Achievers University, Owo, Ondo State, Nigeria.
Dele OGUNMOLA
Department of Accounting, Achievers University, Owo, Ondo State, Nigeria.
Soliu Ayodele ALADESAWE
Department of Accounting, Achievers University, Owo, Ondo State, Nigeria.
Biliki Abiola ADIGUN
Department of Accounting, Achievers University, Owo, Ondo State, Nigeria.
Henry Kehinde FASUA *
Department of Accounting, Achievers University, Owo, Ondo State, Nigeria.
*Author to whom correspondence should be addressed.
Abstract
This study investigates the impact of audit committee attributes on the quality of financial reporting among oil and gas companies listed on the Nigerian Exchange Group. Focusing on three key attributes, audit committee independence, audit committee size, and audit committee meeting frequency, the research employs a mixed-methods approach, analyzing data using panel ordinary least squares (OLS) regression from annual reports spanning 2014 to 2024. The findings revealed that audit committees with greater independence significantly improve the accuracy of financial disclosures. Conversely, larger committee sizes correlate with reduced reporting quality, while the frequency of meetings appears to have no significant effect. The study recommends that regulatory bodies, such as the Nigerian Exchange Group (NGX) and the Financial Reporting Council of Nigeria (FRCN), intensify enforcement of governance standards, particularly those governing the structure and responsibilities of audit committees.
Keywords: Audit committee independence, committee size, meeting frequency, quality of financial reporting