Department of Business Administration

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https://keffi.nsuk.edu.ng/handle/20.500.14448/558

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Browsing Department of Business Administration by Subject "Audit quality"

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    MODERATING EFFECT OF AUDIT COMMITTEE EFFECTIVENESS ON THE RELATIONSHIP BETWEEN AUDIT QUALITY AND REAL EARNINGS MANAGEMENT OF NON-FINANCIAL FIRMS IN NIGERIA
    (Department of Business Administration, Nasarawa State University Keffi, 2022-02-10) Adigizey, John Dollay
    Expectationforimprovement in audit quality offirms has been on a rising trend in view offrequent cases ofcorporate scandals originatingfrom managers' activities, viz-a-viz, the earnings management practices. This study examined the moderating effect of audit committee effectiveness on the relationship between audit quality and real earnings management oflisted nonfinancialfirms in Nigeria. Longitudinal research design was adopted with a study population of 116 nonfinancial companies quoted on the Nigeria Exchange Group (NGX),from which a sample of 50firms was selected and data extractedfrom their audited annual reportsfor the period 2011-2020. Using Eviews 9, the study employed multiple regression technique to analyze the data. Results showed that audit-committee-effectiveness had a significant moderating effect on the relationship between audit fire-eater, auditor-tenure and auditor-industry-specialization, and real earnings- . management, but had no significant moderating effect on the relationship between audit-fees and real earnings-management. It was thus concluded that audit- committee-effectivenessfacilitated monitoring activities over the auditor to ensure greater financial reporting quality. The study, therefore, recommended the need for companies, stakeholders, finance/accounting regulators, to consider an expanded approach in constraining real earnings management by ensuring that audit committee members have financial expertise to enhance their effectiveness. Keywords: Audit-committee-effectiveness, Non-financial-firms, Audit quality, Real-earnings-managemen