AUDIT COMMITTEE DIVERSITY AND THE REPUTATION OF AUDIT: EVIDENCE FROM SELECTED NON-BANKS FINANCIAL FIRMS IN NIGERIA

This study investigated the effect of audit committee diversity on audit quality of quoted non-bank financial firm in Nigeria from (2011-2020). Two research questions and two hypotheses were formulated for the study. Ex-post facto research design was employed in the study. The population of the study included all non-bank financial firms quoted and trading on the Nigerian Exchange Group (NXG) (NSE) as at 31st December 2021 with a sample size of Twenty-two (22) non-bank financial firms selected from the population sector. The study relied on secondary sources of data which was obtained from Annual reports of sampled firms as provided by individual firms and Nigerian Exchange Group (NXG) website. Logistic regression analysis was employed in validating the hypotheses. The study revealed a significant positive effect of audit committee gender diversity, audit fee and firm size on audit quality. Audit committee racial diversity was not significant. Consequent on the findings, the study therefore recommends amongst others that firms should maintain a good proportion of women directors in the audit committee as this has shown by statistical analysis that the reputation of audit is largely affected by the inclusion of women in the audit committee.