Audit committees play a crucial role in overseeing auditor changes to ensure accurate financial reporting. Research shows that the characteristics of audit committee members impact these changes. Independent committee members with governance expertise and lower stock ownership can reduce the likelihood of auditors being dismissed after issuing a warning report. Auditor changes can also occur due to various reasons like accounting disagreements and fee disputes, which may signal attempts to find auditors more agreeable to financial decisions. When auditors resign, fees are higher before and after the change, suggesting both the outgoing and incoming auditors charge more. The audit committee's involvement in appointing and overseeing auditors can improve financial reporting quality when they possess certain key characteristics.