Audit Committee Expertise Drives Up Audit Fees, Improving Corporate Governance
The article investigates how the expertise and training of audit committee members affect audit fees. By looking at factors like committee size, independence, meetings, expertise, and training, the research shows that audit fees are negatively linked to committee size and training but positively associated with committee expertise. More financial-related training attended by directors leads to higher audit fees, indicating that better-trained committees demand more assurance and higher-quality audits. The study emphasizes the importance of relevant training for audit committee members in reducing audit fees and improving audit quality, offering valuable insights for policymakers and practitioners on disclosing director's training in annual reports.