Mountain Top University Library

ABSTRACT

For both developing and developed economies, Banks and Auditors play extensive roles in the process of development and economic growth.
Thus, this paper examines the relationship between Audit committee characteristics and Performance of Deposit Money Banks in Nigeria. The main objective of this research is to ascertain the relationship between audit committee characteristics and DMBs performance in Nigeria over a period of 6 years between 2013 & 2018 using correlative research design. The study employed simple random sampling technique. Data obtained will be subjected to Regression analysis using Statistical Package for Social Sciences (SPSS). Independent variables that was used to measure Audit Committee Characteristics included Independence of Audit Committee Members, Size of Audit Committee Members, and Heterogeneity Audit Committee Members and dependent variable was DMBs Performance. Annual reports were used to measure all the independent variables while ROA was used to measure the dependent variable. The data was subjected to Linear Regression Analysis to test the research hypotheses. The probability level was set up at 0.05 significance. The study concluded that DMBs performance increases proportionately with more inclusive using of Audit Characteristics. This study however recommends that Audit committee size should be maintained to effectively monitor the financial reporting and auditing processes of the organizations. Additionally, Female directors who partake in audit committee should be carefully selected by the management to ensure their full participation. Generally, the study indicated that Audit Characteristics contribute to the performance of DMBs in Nigeria.

Keywords: Audit Committee, Deposit Money Banks, Heterogeneity, Independence, Performance, Size.