The Impact of the Risk Committee on the Quality Financial Reporting and Auditing Fees

Subject Areas :

Saeed Omidi Kordsholi ¹ (Department of Accounting, Fasa Branch, Islamic Azad University, Fasa, Iran)
Mohammad reza Pajoohi ² (Department of Accounting, Shiraz University, Shiraz, Iran. (Corresponding Author)

Received: 2023-12-10 Accepted : 2024-02-01 Published : 2024-03-20

Keywords: Financial Reporting Quality, audit fee, Keywords: Risk management Committee,

Abstract :

Abstract Risk Management Committee alone obliges auditors to conduct more regular audits and call for escalated levels of audit oversight. In other words, external auditors are obliged to dig deeper into financial statements which is more time consuming and incurs higher audit fees. The risk management committee may also encourage companies to allocate sufficient resources to their internal control systems and place them at the center of attention, which should in turn lead to more reliable financial statements. The present study was an attempt to investigate the impact of the risk management committee on the quality of financial reporting and auditing fees. To this end, a sample of 103 companies listed on the Tehran Stock Exchange was selected. The panel data method and principal component analysis (carried out within the framework of R statistical software) were used to test the hypotheses. The results showed that the risk management committee has no significant effect on the quality of financial reporting and auditing fees.

References:

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