AUDIT PROCESS AND ACCOUNTING CONSERVATISM IN THE MIDST OF THE LISTED OIL AND GAS FIRMS IN NIGERIA

  • Aruna Ishola Mamidu
Keywords: Audit process; board independence, board meetings and board Size.

Abstract

This study investigated the special effects of audit process in areas of board structure attributes on conservatism in accounting in the midst of registered Oil and Gas businesses in Nigeria. The research used correlation and longitudinal study designs. All the registered Oil and Gas firms on the Nigerian Exchange Group as at 31st December, 2021 were used. Census sampling technique was used to select the sample size of 10 firms. Information were composed from the available yearly accounts of the companies from of 2012 to 2021. Information were investigated using descriptive and inferential statistics and ordinary least square regression exploration. The outcomes of the estimations shown that the relationship between board independence {0.229918(0.0002)}, board meetings {1.046311(0.0168)} and accounting conservatism was positive and significance among the listed Oil and Gas companies in Nigeria. In addition, it was found that the association between board size {0.148814(0.7236)} and accounting conservatism was positive but none significance among the registered Oil and Gas companies in Nigeria. The study concluded that board independence and board meeting in audit process had contributed to accounting conservatism immensely. Conversely, board size in audit process had not significantly enhanced accounting conservatism. It was therefore recommended that board independence should not be compromised if the current positive contribution of board independence to accounting conservatism is to be sustained. The board of directors should endeavour to hold regular meetings as this would enable them to produce financial reports that are globally reliant and acceptable. This might eventually reduce the current rampant corporate collapse.

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Published
2023-12-26