ABSTRACT
Out of the worries ignited by the incessant occurrence of organizations failure and liquidation in Nigeria, even with the presence of audit committees in these organizations, this project topic was born. A topic aimed at evaluating audit committee and financial reporting Nigeria. In carrying out this investigation, the likert-scale questionnaire was drawn to extract correct and direct data from respondents in some randomly selected firms. Data extracted were presented, analyzed and interpreted. Hypothesis were tested using chi-square with five percent (5%) level of significance, indicating ninety five percent (95%) assurance or confidence on the accuracy reliability and validity of the data collected and information gathered therefrom. After rigorous research and study, it was revealed that audit committees have contributed immensely to the financial reporting in Nigeria, though at some point they just exist without making any considerable impact in the financial reporting system in the firm they are established. It was recommended that it is not enough for companies to establish audit committees because the law, CAMD 1990, says so but that the company and its board of directors must show full commitment to accountability by providing a conducive environment in which their audit committees can discharge their responsibilities effectively and efficiently.