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Audit committee characteristics and earnings management of listed consumer goods in Nigeria

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Abstract

This project is on Audit committee characteristics and earnings management of listed consumer goods in Nigeria. The objective of this study is to audit committee characteristics and earnings management of listed consumer goods in Nigeria the source of data was secondary data which was obtained from the annual reports and accounts of the sampled companies and Nigerian Stock Exchange Fact Book is used to find out the listed Firms for the period of 2014 to 2018. Findings from the study revealed that larger audit committee members are more effective in monitoring the activities of the management, and they are also better at maintaining the financial reporting process. A correlation research design was adopted due to the fact that the study measures relationships between audit committee characteristics and earnings management of listed consumer goods Firms in Nigeria. Finally, it was recommended that: The composition of audit committee members should clearly be spelt out so as to enable them perform their functions effectively, because SEC is silent with regards to the composition of audit committee members. Also, the composition may be stated in such a way that the independent members should have financial knowledge, resulting in dual attributes like audit committee independence with financial knowledge rather than independence alone.

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