Audit committee effectiveness

This study examines the effect of audit committee effectiveness on corporate tunnelling among listed consumer goods firms in Nigeria, with a particular focus on audit committee size, independence, and financial expertise. This study examines the effect of audit committee effectiveness on corporate tunnelling in listed firms, with specific focus on audit committee size, audit committee independence, and audit committee expertise as key dimensions of audit committee effectiveness.
The study adopts an ex-post facto research design and utilizes secondary data obtained from the annual reports of selected listed firms over a specified period. Descriptive statistics, correlation analysis, and multiple regression techniques are employed to analyze the relationship between audit committee characteristics and corporate tunnelling. Audit committee size is measured by the number of members in the committee, audit committee independence by the proportion of independent non-executive directors, and audit ommittee
expertise by the financial and accounting knowledge possessed by committee members. The findings reveal that audit committee independence and audit committee expertise have significant negative effects on corporate tunnelling, indicating that independent and financially knowledgeable audit committees are more effective in reducing opportunistic managerial activities and protecting shareholders’ interests. However, audit committee size shows a mixed relationship with corporate tunnelling, suggesting that merely increasing committee membership does not necessarily enhance monitoring effectiveness.
The study concludes that effective audit committees play a critical role in curbing corporate tunnelling and improving corporate governance practices. The study therefore recommends that firms should strengthen the independence and professional competence of audit committee members to enhance oversight functions and reduce the likelihood of resource expropriation within organizations

This study examined the impact of audit committee effectiveness on financial reporting quality among one hundred (100) Nigerian listed companies from 2019 to 2024. Despite governance reforms under CAMA (2020) and the NCCG (2018), concerns remain about earnings management and reporting credibility. The study analyzed audit committee attributes, independence, financial expertise, size, meeting frequency, and committee effectiveness, using a quantitative panel design and fixed-effects regression. Financial reporting quality was measured using a composite index covering accrual quality, timeliness, audit opinion quality, and disclosure compliance.
Results show that independence, financial expertise, meeting frequency, and committee effectiveness significantly improve financial reporting quality, with financial expertise being the strongest predictor. Audit committee size was not significant. Among control variables, company size and committee independence positively affect reporting quality, while leverage has a negative effect. The study concludes that competence and active engagement enhance governance effectiveness more than structural compliance and recommends strengthening expertise, independence, meeting practices, etc.