EFFECT OF BOARD AND AUDIT COMMITTEE CHARACTERISTICS ON FRAUDULENT FINANCIAL REPORTING OF LISTED NON – FINANCIAL FIRMS IN NIGERIA

Persistent concerns over fraudulent financial reporting (FFR) among listed firms in Nigeria raise questions about the effectiveness of board and audit committee oversight. This study emirically examines the effects of board and audit committee characteristics on FFR among listed non-financial firms in Nigeria from 2020 to 2024. Specifically, it investigates board independence, board financial expertise, audit committee independence, audit committee financial expertise, and audit committee meeting frequency. The Beneish M-Score measures FFR. A correlational research design was adopted using secondary data from annual reports of 103 non-financial firms listed on the Nigerian Exchange Group (NGX), employing a census approach. Data were analyzed using Panel Binary Logistic Regression. Findings show that audit committee financial expertise has a positive and significant effect on FFR, suggesting contextual challenges in oversight effectiveness. Board financial expertise and audit committee meeting frequency have negative and significant effects, indicating stronger monitoring. The study recommends strengthening governance effectiveness, independence, ethical commitment, and frequent audit committee meetings.