ABSTRACT

This project intends to examine the traditional factors that led to the emergence of Audit Committees, the statutory requirements as to its composition, and its method operation. Attention will also be focused on the roles and responsibility of the audit committees. Data were gathered both from secondary and primary sources, manifested in the Literature review, and the use of questionnaires and interview schedules respectively. In the analysis of data, simple percentages were used. The hypothesis were subsequently tested by the use of chi-square statistical technique. Based on the analysis of the data, the following are the major findings of the research; That audit committee exists in public limited companies, that their power supersedes that of internal and external auditors, that they ascertain whether the accounting and reporting policies of the company is in accordance with legal and ethical practices, that they reviews external auditors domestic reports, that they ascertains the effectiveness of accounting and internal controls, that they increase the efficiency and effectiveness of management. Audit committees must up of committed, hard working competent individuals, following a well define mission and character so that they can effectively serve the shareholders. In conclusion, its been established that audit committee is being set up to review the annual financial statement submitted by external auditors of public 'limited companies (PLC) before submission to the board of directors, prior to annual general meeting, who later submit same to shareholder at the Annual General Meeting.