THE ROLE OF AUDIT COMMITTEES IN ENHANCING FINANCIAL REPORTING CREDIBILITY
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- NGN 3000
ABSTRACT:
This research investigates the role of audit committees in enhancing financial reporting credibility in Rivers State, Nigeria. The objectives are to: (1) determine the impact of audit committees on financial statement reliability, (2) assess the effectiveness of audit committees in preventing financial misstatements, and (3) analyze the influence of audit committees on stakeholder trust. A survey design was employed to gather data from corporate board members, auditors, and financial managers. The sample size, calculated using Taro Yamane's formula, ensures representativeness. Nigerian Breweries Plc was chosen as the case study due to its effective audit committee practices. The reliability coefficient score of the survey was 0.88. Findings indicate that robust audit committees significantly enhance the credibility of financial reports and stakeholder trust. It is recommended that companies in Rivers State strengthen their audit committees by incorporating best practices and continuous training.
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