EFFECT OF BOARD AUDIT COMMITTEE ATTRIBUTES ON ASSETS FRAUD DETECTION AMONG LISTED MANUFACTURING COMPANIES IN NIGERIA

Abstract

This study examines the effect of audit committee attributes, such as size, independence, diversity, and diligence—on asset fraud detection among listed manufacturing companies in Nigeria. While prior research provides mixed findings on how these attributes influence fraud detection, specific studies on asset fraud and in emerging markets remain limited. Using a sample of 48 companies over 11 years (528 company-year observations), the study employs a descriptive and correlational research design and applies multiple regression analysis. Findings reveal that larger audit committees, higher diversity, and more frequent meetings are negatively associated with asset fraud detection, while independence shows no significant effect. Conversely, firm size demonstrates a strong positive impact on fraud detection. These results suggest that traditional assumptions about audit committee effectiveness may not hold universally and highlight the importance of context-specific governance strategies. The study provides valuable insights for enhancing corporate governance practices in emerging markets.

Keywords: Audit Committee Attributes, Asset Fraud Detection, Corporate Governance, manufacturing Companies