Faculty
Department
Year of Publication
upload
Publication Type
Abstract
This study investigated the relationship between audit committee attributes (audit committee size
(ACSIZE), audit committee independence (ACIND), audit committee frequency of meetings
(ACFMEET), audit committee financial expertise (ACFEXP) and audit committee gender
diversity (ACGEND) and financial statement fraud in companies listed on the Nigerian Stock
Exchange. This study employed the longitudinal research design. The design was chosen because the
observation of variables was over the period of six (6) years (2014 through 2019). The data of
the study were generated from secondary sources obtained from the annual reports of the
selected companies and the NSE fact book. The data were analysed using binary probit
regression model, because of the dichotomous nature of the dependent variable. The findings from the study revealed that audit committee attributes plays relatively different
and important roles in the prevention and reduction of the likelihood of financial statement fraud
in the selected listed companies in Nigeria. ACSIZE was found to positively and significantly
affect the likelihood of financial statement fraud, while ACIND and ACGEND were found to
have positive and insignificant relationship with the likelihood of financial statement fraud. ACFMEET and ACFEXP were found to have negative and significant effects on the likelihood
of financial statement fraud, suggesting unit increase in these variables leads to a reduction in the
likelihood of financial statement fraud which is consistent with the expectation. The control
variables of firm size (FMSIZE) and firm age (FMAGE) respectively have negative/insignificant
relationship and positive/insignificant relationship with the likelihood of financial statement
fraud. In line with these findings the study recommendes among others that relevant regulators
such as Financial Reporting Council of Nigeria, Central Bank of Nigeria, Nigerian Deposit
Insurance Corporation, and Security and Exchange Commission should ensure all companies
listed in Nigeria strictly comply with the provisions of Companies and Allied Matters Act (2020), Nigerian Code of Corporate Governance (2018) and any other relevant corporate operational
guidelines to ensure healthy corporate organisations in Nigeria. This study concluded that, corporate audit committees are effective and efficient in corporate fraud prevention, reduction
and control, when they are properly strengthened by their companies
(ACSIZE), audit committee independence (ACIND), audit committee frequency of meetings
(ACFMEET), audit committee financial expertise (ACFEXP) and audit committee gender
diversity (ACGEND) and financial statement fraud in companies listed on the Nigerian Stock
Exchange. This study employed the longitudinal research design. The design was chosen because the
observation of variables was over the period of six (6) years (2014 through 2019). The data of
the study were generated from secondary sources obtained from the annual reports of the
selected companies and the NSE fact book. The data were analysed using binary probit
regression model, because of the dichotomous nature of the dependent variable. The findings from the study revealed that audit committee attributes plays relatively different
and important roles in the prevention and reduction of the likelihood of financial statement fraud
in the selected listed companies in Nigeria. ACSIZE was found to positively and significantly
affect the likelihood of financial statement fraud, while ACIND and ACGEND were found to
have positive and insignificant relationship with the likelihood of financial statement fraud. ACFMEET and ACFEXP were found to have negative and significant effects on the likelihood
of financial statement fraud, suggesting unit increase in these variables leads to a reduction in the
likelihood of financial statement fraud which is consistent with the expectation. The control
variables of firm size (FMSIZE) and firm age (FMAGE) respectively have negative/insignificant
relationship and positive/insignificant relationship with the likelihood of financial statement
fraud. In line with these findings the study recommendes among others that relevant regulators
such as Financial Reporting Council of Nigeria, Central Bank of Nigeria, Nigerian Deposit
Insurance Corporation, and Security and Exchange Commission should ensure all companies
listed in Nigeria strictly comply with the provisions of Companies and Allied Matters Act (2020), Nigerian Code of Corporate Governance (2018) and any other relevant corporate operational
guidelines to ensure healthy corporate organisations in Nigeria. This study concluded that, corporate audit committees are effective and efficient in corporate fraud prevention, reduction
and control, when they are properly strengthened by their companies
Supervisor(s)
co-supervisor