The drivers and impact of audit committee involvement on audit quality

What?

The key objectives of the project are to understand, in the Dutch context: (1) the determinants of audit committee involvement with a particular focus on audit committee leadership, social cohesion of the audit committee and its fit in the overall board; (2) the impact of audit committee involvement on audit input factors (e.g., the number of hours spent on the engagement, audit and non-audit fees, the composition of the audit team and auditor selection); (3) the impact of audit committee involvement on audit process factors (e.g., risk assessment, audit planning, and the identification misstatements); (4) the impact of audit committee involvement on audit output factors (e.g., evaluation of identified misstatements and audit adjustments, KAM reporting and other issues clearance); and (5) the impact of audit committee involvement on pre-audit financial reporting quality and the difference in financial reporting quality pre- and post-audit.

Why?

The insights of the proposed project will not only be relevant for the academic community, but also for audit practice, standard setters and regulators to better understand the role of audit committee leadership, social cohesion of the audit committee and its fit in the overall board, and how it affects the core input, process and output factors relevant to audit quality, as well as the incremental contribution of the external auditor in improving financial reporting quality conditional on the extent of audit committee involvement.

Project Number
2018B03

Research Team
Prof. Ann Vanstraelen
Prof. Ganesh Krishnamoorthy
Dr. Rogier Deumes
Dr. Caren Schelleman
Dr. Matthijs van Peteghem
Ulrike Thürheimer MSc
Sanne Jansen MSc

Involved University
Maastricht University

Timeline
09/18 – 08/21