“…Subsequently, an effective AC is more likely to prevent management from making intentional or unintentional mistakes resulting in misleading stakeholders about firm economic performance (Dhaliwal et al., 2010). The literature also shows that AC financial expertise, AC independence levels, the frequency of AC meetings, and AC gender diversity have a positive influence on firms’ financial statement quality and internal controls quality (e.g., see more recent work by Anderson, Christ, Johnstone, & Rittenberg, 2012; Badolato, Donelson, & Ege, 2014, Bruynseels & Cardinaels, 2014; Nekhili, Gull, Chtioui, & Radhouane, 2019). Note that Appendix A summarises the key AC requirements as required by regulation (SOX), and highlights the key literature and findings.…”