Audit committee effectiveness and financial reporting quality

evidence from low and mid-tier Australian firms

Won Sil Kang, Susan Wright, Alan Kilgore

Research output: Contribution to conferenceAbstract

Abstract

Recent scrutiny of the integrity of corporate reporting has led to regulatory changes designed to restore confidence in corporate governance, by improving the credibility and reliability of financial reporting. In this context, this study examines the relation between audit committee characteristic and financial reporting quality for low and mid tier listed firms on the Australian Stock Exchange in 2006. In a setting in which audit committees are not mandatory, the study investigates whether recommendations relating to audit committee formation, independence, technical expertise, size, number of meetings and charter are associated with improved financial reporting quality. Advanced measures of earnings management are used as proxies for financial reporting quality. Significant results are found for independence and financial expertise, which suggests that qualitative audit committee characteristics are important in improving financial reporting quality for low and mid tier firms.
Original languageEnglish
Number of pages1
Publication statusPublished - 2008
EventAmerican Accounting Association Annual Meeting - Anaheim, California
Duration: 9 Oct 200712 Oct 2007

Conference

ConferenceAmerican Accounting Association Annual Meeting
CityAnaheim, California
Period9/10/0712/10/07

Fingerprint Dive into the research topics of 'Audit committee effectiveness and financial reporting quality: evidence from low and mid-tier Australian firms'. Together they form a unique fingerprint.

  • Cite this

    Kang, W. S., Wright, S., & Kilgore, A. (2008). Audit committee effectiveness and financial reporting quality: evidence from low and mid-tier Australian firms. Abstract from American Accounting Association Annual Meeting, Anaheim, California, .