EFFECTS OF AUDIT COMMITTEE CHARACTERISTICS ON FINANCIAL REPORTING QUALITY OF LISTED NON- FINANCIAL FIRM IN NIGERIA

ABSTRACT This study investigates the effects of audit committee characteristics on the financial reporting quality of listed non-financial firms in Nigeria. Utilizing data from 103 non-financial companies listed on the Nigeria Exchange Group (NGX) as of May 28, 2024, the research examines correlations and regressions to understand how factors like audit committee meetings (ACMEE), financial expertise (ACEXP), and independence (ACIND) influence total accruals (TACC) as a proxy for financial reporting quality. The findings reveal that more frequent audit committee meetings and higher levels of financial expertise are positively correlated with improved financial reporting quality. However, regression analysis shows that only financial expertise significantly impacts reporting quality, while meeting frequency and independence do not demonstrate statistically significant effects. These results suggest that while regular meetings and member independence are beneficial, their direct influence on reporting quality is complex and context-dependent. The study concludes that enhancing the financial expertise of audit committee members should be a priority for organizations, alongside maintaining regular meetings and ensuring member independence. Practical recommendations include recruiting financially literate members, fostering effective committee meetings, balancing independence with expertise, strengthening governance structures, and investing in technological solutions to enhance reporting accuracy and stakeholder confidence. These measures are vital for improving the oversight and quality of financial reporting in Nigerian non-financial firms.