BOARD INDEPENDENCE AND AUDIT QUALITY OF LISTED CONSUMER GOODS FIRMS IN NIGERIA: MODERATED BY AUDIT COMMITTEE GENDER COMPOSITION

Abstract

Despite the implementation of the Nigerian Code of Corporate Governance (2018), Audit quality in the consumer goods sector is an important concern because of the recurring financial reporting lapses and corporate failures. While board independence is theorized to enhance oversight, the substantive impact of gender-diverse audit committees as a moderating factor in is insufficiently explored. This study examines the moderating effect of audit committee gender composition on the relationship between board independence and the audit quality of listed consumer goods firms in Nigeria. The study employs an ex-post facto research design; the study analyzed a population of 21 listed consumer goods firms. A sample of 15 firms was selected via purposive sampling, covering a ten-year period from 2014 to 2023. Secondary data were extracted from annual reports and analyzed using multiple regression techniques to test the hypothesized relationships. Findings reveal that board independence and audit committee gender composition have positive and statistically significant individual effects on audit quality. However, the interaction between board independence and gender composition exerts a negative and statistically significant influence on audit quality. This suggests that the governance variables are effective in isolation, but their combination may lead to governance tensions or oversight redundancies that diminish overall audit efficacy. The study concludes that board independence and audit committee gender diversity align with agency theory expectations for improved monitoring. The study recommends that regulatory authorities strengthen policies regarding board independence and that firms prioritize gender diversity. However, to mitigate the observed negative interaction, firms must establish clear role definitions to prevent governance conflicts and ensure that diversity translates into substantive audit quality enhancements