Audit Committee Characteristics and Audit Efficiency: Evidence from Nigerian Listed Deposit Money Banks

Abstract

The study examines the effect of audit committee characteristics on audit efficiency of Nigerian listed Deposit Money Banks. A sample size of 11 listed banks is selected using a census technique. The study covers a period from 2006 to 2020, resulting in 165 firm-year observations. The audit efficiency is proxy using audit fee and audit delay. The data obtained is analysed using the Ordinary Least Square Method (OLS). The result shows that audit committee is positively associated with audit fee, but negatively related to audit delay. The result indicates that audit committee members recommend a reputable independent accountants to the banks, who charge a premium audit price. However, the external auditors ensure financial reporting quality by reducing the protracted audit delay. Keywords: Audit delay, Audit committee members, Audit fees, Nigeria, Banks DOI: 10.7176/EJBM/14-16-05 Publication date: August 31 st 2022