Voluntary Audit Committees Boost Audit Quality, Improve Corporate Governance
The study looked at how forming voluntary audit committees in Taiwan affects the selection of individual audit partners and audit quality. They found that companies with voluntary audit committees tend to choose higher quality auditors, like industry specialists and those with more clients. These companies also had better audit quality, as shown by lower discretionary accruals. The results suggest that having a voluntary audit committee can lead to better auditor selection and higher audit quality.