Abstract:
The aim of this study was to examine the role effectiveness of Audit
Committees and financial reporting quality in selected companies in Ghana.
The study adopted the case study research design. A total of fifty-four
respondents participated in the study. The convenience sampling method was
used in selecting the respondents for the study. Data was collected using
questionnaire. Spearman Rank Order (rho) correlation, frequencies and
percentages, pie charts, and mean and standard deviation were employed in
analysing the data gathered. The Statistical Packages for Social Sciences
(SPSS) version 21.0 was the software that was used for the data analysis. The
findings of the study revealed that the Audit Committees (ACs) in the
companies studied were generally not effective in the performance of their
duties. Additionally, the study found out that the effectiveness of ACs is
affected principally by poor management support; low level of management
interest in the activities of the audit committee; poor commitment of
management toward the implementation of audit committee’s findings;
lack/inadequate resources for the audit committee to effectively perform its
function, among others. Last but not least, the study found out that the quality
of the companies’ financial reporting did not have any significant relationship
with Audit Committees’ frequency of meetings, size, degree of independence,
and financial expertise. Based on the findings of the study, it was
recommended among other things that management of the companies should
provide the needed support to the Audit Committee and should be more
committed in implementing the recommendations by the committee.
