The study examined how the makeup of audit committees in Israel impacts negative events in companies. In Israel, the audit committee is split into two different committees, giving a unique chance to study beyond just financial reviews. Data from companies on the Tel Aviv Stock Exchange showed that larger audit committees are linked to more negative events due to complexities and potential conflicts within them. Having directors with accounting and financial expertise on the committee was related to fewer negative events, emphasizing their value beyond reviewing financial records. Surprisingly, the presence of independent directors on the committee did not significantly affect the likelihood of negative events, possibly because some independents may not truly act independently in practice.