Audit Committees Fail to Improve Going-Concern Opinions, Putting Investors at Risk
The research looked into whether having knowledgeable audit committees affects the chances of getting certain financial reports from auditors. It also explored if such committees protect auditors from being fired after issuing these reports. Results suggest that having expertise on the audit committee does not impact getting these reports or saving auditors from dismissals. Contrary to earlier studies, the research finds no significant link between audit committee expertise and the likelihood of receiving these reports or auditor dismissals. But having experts on the audit committee can help improve the information in these financial reports and reduce mistakes, showing the importance of strengthening audit committees for better oversight and audit quality.