Audit Committee Characteristics and Audit Quality

Abstract

The audit committee plays a pivotal role in strengthening corporate governance by overseeing financial reporting, internal controls, risk management, and the external audit process. The effectiveness of an audit committee largely depends on its characteristics, including independence, financial expertise, committee size, meeting frequency, and diligence, which collectively influence the quality of auditing and the reliability of financial reporting. This study examines the relationship between audit committee characteristics and audit quality by evaluating how these governance attributes affect auditor independence, financial reporting quality, internal control effectiveness, and stakeholder confidence. A quantitative research design was employed, and data were collected through structured questionnaires administered to audit committee members, external auditors, internal auditors, finance managers, and corporate executives across selected organizations. Appropriate statistical techniques were used to analyze the relationship between audit committee characteristics and audit quality.  audit committees with greater independence, higher levels of financial expertise, regular meetings, and active oversight significantly improve audit quality by strengthening auditor independence, enhancing internal controls, reducing financial reporting errors, and promoting compliance with regulatory requirements. Furthermore, effective audit committees contribute to improved corporate transparency, reduced fraud risk, and greater investor confidence. The study concludes that well-structured audit committees are essential for ensuring high-quality auditing and effective corporate governance. The findings provide valuable insights for corporate boards, regulators, policymakers, audit professionals, and researchers seeking to strengthen governance frameworks through effective audit committee practices