The impact of audit committee expertise on audit quality: Evidence from UK audit fees

Abstract

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Financially Qualified Members in an Upper Echelon and Their Relationship with Corporate Sustainability: Evidence from an Emerging Economy

“…This study suggests that one of the key recommendations for the CCG of almost every developed and developing economy should be the availability of financially-qualified people in ACs to allow high-quality and effective sustainability of profit-making procedures in firms. These findings show that CS is positively influenced by the presence of accounting-qualified FQD in AC, which supports the arguments of prior research which argued that more effective ACs are likely to be associated with higher accounting expertise [76]. Another important contribution of this study is that the random effect model suggests that the absence of FQD with accounting expertise in AC has a negative relationship with the quality of financial statements, as measured by ROA; this shows that the absence of accounting literate members in AC may compromise accounting figures of the company which ultimately results in low CS.…”

“…Section 2 of SOX (2002) elaborates an AC as, "a committee (or equivalent body) established by and amongst the BOD of an issuer to oversee the accounting and financial reporting processes of the issuer and audits of the financial statements of the issuer." Research regarding ACs measures their ability to effectively monitor the formulation of financial reports and reduce the chances of EM in three dimensions, which are: Its financial expertise [40,76], its independence [77,78], and its frequency of meetings [77,79]. In [76], the authors investigated the impact of AC expertise on audit quality, and the results suggest that both specialist and non-specialist financial experts influence the audit quality, however in different ways.…”

“…Research regarding ACs measures their ability to effectively monitor the formulation of financial reports and reduce the chances of EM in three dimensions, which are: Its financial expertise [40,76], its independence [77,78], and its frequency of meetings [77,79]. In [76], the authors investigated the impact of AC expertise on audit quality, and the results suggest that both specialist and non-specialist financial experts influence the audit quality, however in different ways. In [50], the author examined whether AC and BOD characteristics are related to EM by the firm and found that there is a negative relationship between AC independence and a firm's abnormal accruals.…”

Pengaruh Skeptisisme Profesional, Due Professional Care, dan Tekanan Anggaran Waktu pada Kualitas Audit

“…Tata kelola yang baik akan digunakan untuk mengawasi pengelolaan keuangan negara. Selain itu, tata kelola yang kuat juga menjadi sebuah harapan guna mencegah perilaku menyimpang serta dapat meningkatkan transparansi eksternal tentang apa yang dilakukan oleh instansi maupun perusahaan dan bagaimana mereka melakukannya (Ghafran & O'Sullivan, 2017). Seluruh instansi negara yang menggunakan keuangan negara harus memiliki laporan keuangan yang menggambarkan praktik transparansi dan dapat dipercaya, serta mempu berkomitmen untuk menegakkan good governance.…”

Value Engineering for the Role of Internal Audit Quality in Activating the Principles of Corporate Governance: A Case of Non-financial Firms on Iraqi Stock Exchange

“…The code of corporate governance around the world are increasingly imposing restrictions to improve internal governance mechanism. Human resource and internal audit committee to scrutinize the affairs of internal audit and recruitment functions are being formed in financial and nonfinancial corporations [7,8]. An audit committee is a subcommittee among few major committees formed by companies under the supervision of the board of directors.…”