The effect of audit committee features and quality of financial statements :

Abstract

This study is to establish the extent to which audit committee features affects the financial statements of NGOs in Busia, Bugiri and Iganga districts. Specifically, the study sought to determine the effect of audit committee independence on the quality of financial statements in NGOs, to determine the effect of audit committee financial accounting and expertise on the financial statements in NGOs and also to establish the effect of audit committee due diligence on the financial statements in NGOs. The study used descriptive correlation, comparative and cross-sectional survey designs. Data collected from 44 respondents using self-administered questionnaires as the key data collection instruments. Data was analyzed using frequency counts, means, and SPSS. The findings revealed that there was a relationship between audit committee independence, audit committee financial accounting and expertise and audit committee due diligence on the financial statements. The audit committee features development brings about effective, efficiency operations of the business which leads to quality financial statements. Recommendations based on the findings were that NGOs should embrace the use of independence in order to ensure quality and to achieve targets, NGOs should also focus on financial accounting and expertise programmes in order to improve on their skills and lastly central and local governments should focus on improving the committee due diligence within Busia, Bugiri and Iganga districts to allow easy supervision of operations in order to boost on the quality of financial statements of NGOs.