Experience of Audit Committee Members and Audit Quality

We investigate whether the experience of audit committee members is associated with audit quality. In order to comprehensively analyse the experience of audit committee members, we include audit committee member tenure, age and multiple-directorships in our analysis. Using observations from 2001 to...

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Main Authors: Sultana, Nigar, Singh, Harj, Rahman, A.
Format: Journal Article
Published: Routledge Journals 2019
Online Access:http://hdl.handle.net/20.500.11937/74397
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author Sultana, Nigar
Singh, Harj
Rahman, A.
author_facet Sultana, Nigar
Singh, Harj
Rahman, A.
author_sort Sultana, Nigar
building Curtin Institutional Repository
collection Online Access
description We investigate whether the experience of audit committee members is associated with audit quality. In order to comprehensively analyse the experience of audit committee members, we include audit committee member tenure, age and multiple-directorships in our analysis. Using observations from 2001 to 2012, we undertake analysis on 13,155 firm-year observations and find that all our proxies of audit committee member experience are positively associated with audit fees. A range of additional tests, including using discretionary accruals as an alternative measure of audit quality and differences-in-differences analysis, support our main findings and our results consequently make a number of contributions to both the literature and policy making. One possible policy contribution is that regulators may wish to consider audit committee characteristics representing experience when framing recommendations to improve audit quality and thereby, financial reporting by firms.
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institution Curtin University Malaysia
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publishDate 2019
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spelling curtin-20.500.11937-743972020-01-17T05:33:55Z Experience of Audit Committee Members and Audit Quality Sultana, Nigar Singh, Harj Rahman, A. We investigate whether the experience of audit committee members is associated with audit quality. In order to comprehensively analyse the experience of audit committee members, we include audit committee member tenure, age and multiple-directorships in our analysis. Using observations from 2001 to 2012, we undertake analysis on 13,155 firm-year observations and find that all our proxies of audit committee member experience are positively associated with audit fees. A range of additional tests, including using discretionary accruals as an alternative measure of audit quality and differences-in-differences analysis, support our main findings and our results consequently make a number of contributions to both the literature and policy making. One possible policy contribution is that regulators may wish to consider audit committee characteristics representing experience when framing recommendations to improve audit quality and thereby, financial reporting by firms. 2019 Journal Article http://hdl.handle.net/20.500.11937/74397 10.1080/09638180.2019.1569543 Routledge Journals restricted
spellingShingle Sultana, Nigar
Singh, Harj
Rahman, A.
Experience of Audit Committee Members and Audit Quality
title Experience of Audit Committee Members and Audit Quality
title_full Experience of Audit Committee Members and Audit Quality
title_fullStr Experience of Audit Committee Members and Audit Quality
title_full_unstemmed Experience of Audit Committee Members and Audit Quality
title_short Experience of Audit Committee Members and Audit Quality
title_sort experience of audit committee members and audit quality
url http://hdl.handle.net/20.500.11937/74397