AUDIT COMMITTEE CHARACTERISTICS AND AUDITOR SELECTION BY LISTED DEPOSIT MONEY BANKS IN NIGERIA

Abstract Audit committee play statutory role in selection of auditors of a company. This study examined the impact of audit committee characteristics on auditor selection of publicly listed deposit money banks (DMBs) in Nigeria. The specific objectives were to assess the impact of audit committee independence, audit committee size and audit committee financial expertise on auditors' selection by listed DMBs in Nigeria. Secondary data was obtained from the annual report of all 13 listed DMBs from 2013 to 2023. Regression analysis was used. The study found that audit committee independence (β= 0.0880, P=0.2089) and audit committee size (β =-0.0025, P=0.9330) had insignificant effect on auditor selection. However, audit committee financial expertise (β=0.0423, P=0.0211) had a significant positive effect. It is concluded that board of banks with more members having financial expertise choose big four audit firms. It is recommended that listed DMBs in Nigeria give priority to the appointment of audit committee members who possess strong financial expertise in accounting, auditing and financial management. This will strengthen the committee’s ability to evaluate and select competent external auditors