This research looked at how certain rules and laws affected how audit committees in companies were set up. They studied 129 companies in different years to see the impact of these rules. What they found was interesting: companies following the recommendations from a committee had bigger sizes and a higher chance to be listed on NASDAQ. Moreover, companies that aligned their audit committees according to new laws had a larger committee, paid directors more, had a more independent committee, and held more meetings. These well-aligned committees were associated with less earnings manipulation and a smaller increase in such manipulation over time. So, it appears that when companies make sure their audit committees are set up properly, they tend to do less funny business with their financial reports.