Audit Committees Crucial to Preventing Corporate Fraud and Misreporting
The article explores how audit committees can help companies avoid financial reporting problems. By studying the differences in the composition and meeting habits of audit committees in companies with and without reporting issues, researchers aim to improve financial reporting quality. Key findings suggest that effective audit committees play a crucial role in corporate governance and can help prevent financial reporting difficulties. Other countries, like Canada and the UK, also emphasize the importance of audit committees in the financial reporting process.