MODERATING ROLE OF AUDIT QUALITY ON CORPORATE GOVERNANCE AND SUSTAINABILITY REPORTING OF LISTED DEPOSIT MONEY BANKS IN NIGERIA

Abstract

This study investigated the moderating role of audit quality on corporate governance (board size and board financial expertise) and sustainability reporting of 14 listed deposit money banks (DMBs) in Nigeria over a ten-year period (2015–2024). Census sampling technique was applied where the entire population was studied. The multiple regression technique was used for the analysis where findings revealed that board size and board financial expertise significantly and positively affect sustainability disclosure levels of listed deposit money banks in Nigeria. However, the interaction effects of audit quality show positive but insignificant influence on corporate governance variables. Therefore, the study recommended that Deposit Money Banks should maintain an optimal and diversified board composition that ensures a balance between managerial control and accountability, prioritize the appointment of financially literate and professionally qualified individuals to the board and audit committees, and not depend solely on the reputation of external auditors but rather focus on strengthening internal control mechanisms and ensuring auditor independence.