EFFECT OF AUDIT COMMITTEE DIMENSIONS ON QUALITY FINANCIAL REPORTING: THE MODERATING ROLE OF POLITICAL INFLUENCE A CASE OF KISII COUNTY GOVERNMENT
EFFECT OF AUDIT COMMITTEE DIMENSIONS ON QUALITY FINANCIAL REPORTING: THE MODERATING ROLE OF POLITICAL INFLUENCE A CASE OF KISII COUNTY GOVERNMENT
Otero Okenye Tom - Department of Accounting & Finance, Kisii University, Kenya
Dr. Joshua Wafula (PhD) - Senior Lecturer, Department of Accounting and Finance, School of Business and Economics Kisii University, Kenya
Dr. Asenath Maobe, (PhD) - Senior Lecturer, Department of Accounting and Finance, School of Business and Economics Kisii University, Kenya
ABSTRACT
Presentation of auditing information has been enhanced by the correct auditing standards and regulations. However, financial quality reporting has been ignored with audit dimensions regarding objectivity of reports. This can be fraud and errors resulting to problems in quality reporting. The purpose of this research was in the first place to establish the role of the audit committee dimension on financial quality reporting with moderation of political influence. To examine the effects of audit committee independence, audit committee meetings and the role of political influence between audit committee dimensions and quality financial reporting of Kisii County Government. Stakeholders’ theory was employed for explaining the study. Therefore, the type of research design used in this study was descriptive survey research design. The sample was 125 using stratified and purposive techniques. Questionnaires were used for collection of information for this study. Regarding the reliability of the instruments, a pilot study was conducted in Migori County where 13 questionnaires were allocated with a view of assessing the reliability of the instruments used in data collection. The study stated that the political influence had a weak positive relationship on the situation and in effect, served to lessen the negativity in the situation and enhance it. On this basis, it is recommended that there should be generalisation of Audit Committee Independence on the formulation of Government Policies for the enhancement of the quality of financial reports. The Members of the Audit Committee must come with term of office and must comprise at least three Members a time. Accounting matters should be of extreme priorities during audit meetings, therefore the committees should spend sufficient time evaluating them. This research therefore proves that many audit committee dimensions indeed play the role of positively influencing the quality of financial reporting. It is recommended that the future research should determine how audit independence can impact the other sections of financial performance in other organisations.
