Effectiveness of the audit committee to quality financial reporting in Nigeria.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
Financial reporting is the preparation of published report for users of financial statements. Theissues relating to financial reporting could be traced back to 1975 with the advent of what wasthen known as corporate report, in England. In Nigeria, following the increasing demand forfinancial information on companies, financial reporting has now assumed an appreciableposition because it provides information that is useful to current and potential investors,creditors and other users in making rational investment, credit, and other financial decisions. Italso enables users to assess the amount, timing, and uncertainty of prospective cash receiptsabout economic them.The issues relating to financial reporting could be traced back to 1975 with the advent of whatwas then known as corporate report, in England. In Nigeria, following the increasing demand forfinancial information on companies, financial reporting has now assumed an appreciableposition because it provides information that is useful to current and potential investors,creditors and other users in making rational investment, credit, and other financial decisions. Italso enables users to assess the amount, timing, and uncertainty of prospective cash receiptsabout economic them. The emergence and development of public limited liability companies brought changesin ownership structure and a complete divorce between ownership and management.Professional managers designated Directors are employed as “agents” to manage the business1