Time to Revisit Audit Committee Activity: Evidence from Audit Adjustments

Sohee Park, Meeok Cho, Bum Joon Kim

Research output: Contribution to journalArticlepeer-review

1 Scopus citations

Abstract

This study examines the impact of audit committee activity on audit adjustments. Using unique Korean data on audit adjustments—the earnings discrepancy between pre-audit earnings prepared by management and audited earnings, we find that frequent audit committee meetings decrease the audit adjustments made by external auditors. However, the effectiveness of audit committee activities declines as the number of meetings increases. Additionally, the findings are more pronounced for firms appointing audit committee chairs with accounting financial expertise. Overall, our study highlights audit committee effectiveness critically depends on its activity and the role of the chair.

Original languageEnglish
Pages (from-to)2330-2341
Number of pages12
JournalEmerging Markets Finance and Trade
Volume60
Issue number10
DOIs
StatePublished - 2024

Bibliographical note

Publisher Copyright:
© 2024 Taylor & Francis Group, LLC.

Keywords

  • accounting financial expertise
  • Audit adjustments
  • audit committee activity
  • audit committee chair

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