Audit Committee Effectiveness and Audit Quality: An Empirical Evidence

Sultan Altass
King Abdulaziz University

Abstract

The main aim of this study is to investigate the relationship between the effectiveness of audit committee (AC) of capital goods firms listed on TASI, Saudi Arabia, and audit quality for the period 2010-2019. Employing logistic regression analysis, the results reveal that audit committee meetings and committee size contribute to higher audit quality (Defined as the company is audited by Big4 auditing firms) while audit committee independence is not associated with audit quality. The findings of this study are relevant to investors and policy makers in Saudi Arabia regarding the reliability of audit committees and its implication on the quality of the audit function in today’s competitive markets.

Presentation