Abstract

<p>This study examined the effect of audit committee effectiveness on financial reporting quality within the context of listed nonfinancial firms in Sub-Saharan Africa. Drawing samples from 235 listed non-financial firms in Nigeria, South Africa, and Kenya <br>spanning the period from <br>2013 to 2022, the study employed Generalized Method of Moments (GMM) step and Stepwise Regression Techniques to analyze <br>the data. The primary objective of the study was to investigate the effect of audit committee effectiveness, including size, <br>diligence, and financial expertise, on financial report quality, as measured by Jones Discretionary Accrual. Additionally, the study <br>extends this objective by examining the moderating role of board independence on the relationship between audit committee <br>attributes and financial reporting quality. The findings revealed that audit committee diligence [coef. = 0.041 (0.002)] has a <br>positive and significant effect on financial reporting quality, suggesting that an increase in audit committee diligence will <br>improve financial reporting quality. However, audit committee size [coef. = 0.011 (0.236)] and financial expertise[coef. = 0.003 <br>(0.990)] exhibited insignificant effects on financial reporting quality. Moreover, the study identified board independence [coef. <br>= 0.022 (0.001)] has a significant moderator, enhancing the impact of audit committee diligence on financial report quality. <br>Based on these findings, the study made the following recommendations to enhance audit committee effectiveness and financial <br>reporting quality in Sub-Saharan Africa. These include promoting active audit committee oversight through regular meetings, <br>fostering collaboration between audit committees and boards, and ensuring a majority of independent directors to strengthen <br>audit committee effectiveness. Additionally, the study underscored the importance of continuous monitoring and evaluation of <br>audit committee effectiveness to address emerging challenges and promote transparency and accountability in financial <br>reporting. Through empirical analysis, the study provides insights into the effectiveness of audit committee effectiveness in<br>enhancing financial reporting quality in Sub-Saharan Africa. The findings contribute to a deeper understanding of audit <br>committee effectiveness and the effect on financial reporting quality in the region, offering valuable contributions for both<br>academic research and practical applications</p>