Investigating the effect of industry expertise and legal expertise of members of audit committees on the quality of the company's audit

Subject Areas : Journal of Capital Market Analysis

mohamad mohamadi ¹ , saman mohamadi ² , paria seraj ³

1 - خیابان بخارست خیابان ششم پلاک 32طبقه اول
2 - استادیار حسابداری ،دانشگاه رازی کرمانشاه ،دانشکده علوم اجتماعی
3 - دانشجوی کارشناسی ارشد،حسابداری،دانشگاه غیر انتفاعی،پرندک،ایران

Received: 2022-12-17 Accepted : 2023-12-04 Published : 2023-11-22

Keywords: Audit Quality, Investigating the Impact of Expertise in the Industry of Audit Committee Members, Legal Expertise of Audit Committee Members,

Abstract :

The main issue studied in the present study is the study of the effect of industry expertise and legal expertise of members of audit committees on the quality of auditing companies listed on the Tehran Stock Exchange. For this purpose and following Ababasah and Yekini (2021), the impact of industry expertise and legal expertise of the members of the audit committee on the remuneration and type of auditor of companies was studied. Also, the effect of auditing committee independence variables, financial expertise of audit committee members, audit committee size, number of audit committee meetings, financial leverage, subsidiaries, corporate losses, corporate risk, profitability and corporate size were controlled in regression models. To test the research hypotheses, the financial information of companies listed on the Tehran Stock Exchange in the period of 6 years between 2015 to 2020 has been used and the final sample consisted of 148 companies (a total of 888 years-companies) which have been selected after applying the restrictions in this study. After measuring the research variables, multivariate regression analysis was used to test the research hypotheses. The tests were performed using Eviews8 software and statistical technique of logistic regression and integrated data method. The findings of the present study showed that the expertise in the industry of the members of the audit committee and the legal expertise of the members of the audit committee had a positive and significant effect on the audit quality of companies in the review period.