عنوان مقاله [English]
Objective: hewaveofscandalsandcollapsesoflargefinancialinstitutions and firms in the world leads to create new corporate governance rules, and one of the most important ones is the necessity of an audit committee in the corporate governance structure. The audit committee plays the role of liaison between the board of directors, the management, and internal and external auditors. Review of the literature on audit committees has shown that effectiveness of the audit committee is essentially a function of its characteristics. Therefore, the right mixture of experience and expertise is necessary to support the audit committee in carrying out its responsibilities effectively. An audit committee should be independent from management in order to be able to conduct effective monitoring and reduce opportunistic management behavior. The expertise of audit committee members in accounting and auditing is another characteristic that is related to committee effectiveness and has been extensively examined in the literature. Studies have shown that effective oversight by the audit committee requires members to possess sufficient knowledge of accounting and auditing to reach an independent assessment of matters presented to them. A large audit committees can increase the effectiveness of the committee by including members with varied expertise and thus provide more intense oversight of the financial reporting process. Audit committee be comprised of a minimum of three directors. Agency and resource dependency theories differ on the effect of the size of the audit committee on its effectiveness. The main aim of the present study is to examine the relationship between Audit committee characteristics and Audit reporting readability.
Methods: The present study is an applied study in terms of goal and in terms of method, it is a descriptive - correlation study. On the other hand, it is based on panel data analysis as well. Statistical population of the present study is consisted of companies listed on Tehran Stock Exchange during the time period of 2014 to 2018 and sample volume is equal to 72 companies.
Results: In this study, in which panel data with fixed effects were used, results obtained from firm data analysis by using multivariate regression test indicated that there is not a significant relationship between Audit committee size, Audit committee independence and Audit committee financial Expertise with Audit reporting readability.
Conclusion: Despite the not a significant relationship between Audit committee size, Audit committee independence and Audit committee financial Expertise with Audit reporting readability need attention to the effectiveness of audit committees characteristics is very important.