Audit Committee Effectiveness in Nigeria: The Perception of Professional Accountants
Journal Title: International Journal of Management Sciences - Year 2015, Vol 5, Issue 2
Abstract
This study examines the attributes that make for audit committee effectiveness in Nigeria from the perspective of Professional Accountants. A survey research design was adopted for the study. 120 Professional Accountants working as Auditors, Accountants and Accounting Academics in the South Eastern part of Nigeria and randomly selected were targeted at their monthly district society meetings and in their work places. The Professional Accountants were either members of the Institute of Chartered Accountants of Nigeria (ICAN) or members of Association of National Accountants of Nigeria (ANAN). The two bodies are the only officially recognized bodies of Accountants in Nigeria. 89 responses were received constituting 74% of the respondents. We considered this adequate to enable meaningful deductions to be made. A questionnaire in the likert format was used to elicit the responses from the respondents. The data of study was analysed and ranked first on the basis of strongly agree responses and then on the basis of mean of the responses. The hypothesis of study was tested with ANOVA test statistic. Five most important factors stood out as having a strong influence on audit committee effectiveness in Nigeria. These are in that order: - Financial literacy of members - Only non-executive Directors should be members of the Committee - Members must be open to regular training - Members must be able to ask relevant questions - Members must have machinery for periodic evaluation of their performances. Findings add to the scanty literature in this area in Nigeria and have implication for regulatory action.
Authors and Affiliations
Okaro Sunday Chukwunedu, Okafor Gloria Ogochukwu, Egbunike Francis Chiedu
Keywords
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- EP ID EP26972
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