EFFECT OF AUDIT COMMITTEE CHARACTERISTICS ON EARNINGS QUALITY OF LISTED CEMENT COMPANIES IN NIGERIA

This study examines the effect of audit committee characteristics on earning quality of listed cement companies in Nigeria. The study adopts ex-post facto design, the study was conducted on four (4) quoted cement companies: (Ashaka Cement Plc, Dangote, Lafarge, WAPCO Nigeria Plc and Company of Northern Nigeria). Using the Nigeria stock Annual Report as at November, 2016, covering the period of 2005 to 2015. Findings from the study indicates that significant positive effect of Audits Committee independence, Audit committee number of meetings and Audit Committee financial expertise on financial reporting quality. Findings also indicate an insignificant negative effect of Audit Committee Size. Based on these findings, the study concludes that the quoted Cement Companies expected to produce quality financial statement reports when committee numbers are mainly professionals accountants or expertise. Therefore cement manufacturing companies in Nigeria should not be interested in large size of the audit committee but the quality of its members.