Audit Committee and Financial Reporting Quality in Public Universities in Ghana: Moderating Role of Perceived Audit Quality

Abstract

This study examined the role of audit committees in enhancing the financial reporting quality of public universities in Ghana, with a focus on the moderating effect of perceived audit quality. Data was collected from 215 audit committee members and financial officers at public universities. A purposive sampling technique and a structured questionnaire were employed. The study revealed that effective audit committees significantly improve financial reporting quality, and this relationship was further strengthened by perceived audit quality. The research underscored the importance of strong audit committee structures and high-quality audits in promoting financial transparency and governance. The study further demonstrated that independent audit committees, financial expertise, committee size, meeting frequency, and communication with external auditors are significantly correlated with financial reporting quality. The study highlights the urgent need for robust audit committees to enhance the governance and financial sustainability of public universities. This study provides valuable insights for policymakers and university administrators to strengthen governance practices and improve stakeholder confidence in financial reporting.