Open AccessPresence of Quality of Audit Committee and Organization’s Monetary Data: An In-depth Analysis
Author(s) -
Ashfaque Ali Banbhan,
Najia Shaikh,
Khalid Hussain Abbasi
Publication year - 2021
Publication title -
progressive research journal of arts and humanities
Language(s) - English
Resource type - Journals
eISSN - 2788-4597
pISSN - 2707-7314
DOI - 10.51872/prjah.vol3.iss1.84
Subject(s) - accounting , audit committee , audit , business , audit evidence , information technology audit , joint audit , corporate governance , quality audit , internal audit , chief audit executive , audit plan , quality (philosophy) , earnings quality , stock exchange , external auditor , earnings , finance , philosophy , accrual , epistemology
All financial regulatory institutions legally bound their listed companies todisclose the information regarding the formulation of their audit committees.This study quantitatively investigates whether the quality of the auditcommittees affects the quality of a firm’s financial information. Using the dataof publicly listed non-financial companies of Pakistan Stock Exchange, thisresearch found a positive association between audit committee qualitymeasures and the firm’s quality of reported earnings. This study extends theunderstanding of measures for audit committee quality to stabilize thefinancial reporting process as it relates to the ongoing discussion byresearchers and financial regulators. Additionally, the study also increasesthe understanding of the concept of external audit quality for various partieswhich are involved in deliverance of good corporate governance practices; forexample, audit committees, external auditors, corporate boards, and topmanagement team. The study also explores the influencing factors, internal aswell as external, in the audit process by constructing its meaning andexplaining its practical importance. This detailed exploration andinvestigation into the procedures of audit quality are vital because auditing isthe process through which numbers in financial reports are checked and reevaluated for any potential clerical errors and omissions