ABSTRACT

The study critically examined the effect of Audit committee on financial reporting quality using listed manufacturing companies with offices in Benin City as case study. Attempt was made to find out if audit committee independence, audit committee size, audit committee financial expertise and audit committee meeting frequency have a significant effect on financial reporting quality. In achieving the objective of the study, the researcher adopted primary sources of data to present and analyse the information for the study. The sample size consists of 50 respondents observed from internal and external audit of manufacturing companies in Benin City. The testing of the hypotheses of the study was done using Chi-Square test. The study revealed that users of financial reporting have understanding of financial reporting and also have confidence in audit committee reports. It was also revealed that influenced audit reporting can cause negative effect on the economy. The study recommends that good payment structure should be established for the auditors so as to help to reduce fraud and necessary support should be given to both audit committee and international auditors to improve the quality of financial reporting.