The impact of audit committee on financial reporting quality

Abstract

The above research papers confirm the fact the accuracy and credibility of financial reports issued by listed firms are crucial for an efficient and viable stock market. Unfortunately, accounting fraud and other financial market misconduct are prevalent in the global market, and have seriously damaged interests of shareholders around the world. To prevent this bad phenomenon and to improve investor confidence, governments around the world have implemented a series of reforms to strengthen internal and external corporate governance mechanisms. Many of these regulatory changes have focused on the composition of an audit committee, a board sub-committee in charge of overseeing a firm’s financial reporting process, internal control structure, internal audit functions, and external audit services. Thus, the aim of this paper is to show the relationship between the impacts of audit committee on financial reporting quality. To achieve the objectives of the paper, the researcher relied on reviewing 15 related studies that were published in different journals and by different authors for time periods (2016 - 2020).