The relationship between audit committee and audit quality: evidence from companies listed on the Warsaw Stock Exchange
Purpose: This study investigates whether the presence of an audit committee, the characteristics of the audit committee, and the use of internal audits are linked to higher quality external audit services, approximated by auditor fees. The analysis is conducted in the light of economic theories, inc...
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| Format: | Article |
| Language: | English |
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Rada Naukowa SKwP
2025-03-01
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| Series: | Zeszyty Teoretyczne Rachunkowości |
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| Online Access: | http://ztr.skwp.pl/gicid/01.3001.0055.0282 |
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| author | Aneta Dzik-Walczak Maria Ociepa |
| author_facet | Aneta Dzik-Walczak Maria Ociepa |
| author_sort | Aneta Dzik-Walczak |
| collection | DOAJ |
| description | Purpose: This study investigates whether the presence of an audit committee, the characteristics of the audit committee, and the use of internal audits are linked to higher quality external audit services, approximated by auditor fees. The analysis is conducted in the light of economic theories, including agency theory, transaction cost theory, and the resource-based view. Methodology/approach: Polish companies listed on the Warsaw Stock Exchange are examined. The sample covers the period 2019–2020. Econometric models for panel data, allowing individual effects to be considered, were estimated. To overcome heteroscedas-ticity, the GLS method was used. Findings: Our results reveal the significant influence of audit committee attributes on audit fees. We find that the expertise of audit committee members is related to lower audit fees. Knowledge in the field of finance and accounting was significant, as was fa-miliarity with the industry. Internal audits were also found to be relevant. Companies with an internal audit unit usually pay less for external audits. The positive effect of audit committee independence on audit quality is confirmed. Research limitations/implications: Our findings offer significant insights for regula-tors, policymakers and professionals regarding the role of audit committees in external audit quality. Originality/value: Our unique dataset is undoubtedly a strength of the paper. |
| format | Article |
| id | doaj-art-9682cd599b7b40b9abf0b11748de55d2 |
| institution | OA Journals |
| issn | 1641-4381 2391-677X |
| language | English |
| publishDate | 2025-03-01 |
| publisher | Rada Naukowa SKwP |
| record_format | Article |
| series | Zeszyty Teoretyczne Rachunkowości |
| spelling | doaj-art-9682cd599b7b40b9abf0b11748de55d22025-08-20T02:16:28ZengRada Naukowa SKwPZeszyty Teoretyczne Rachunkowości1641-43812391-677X2025-03-01491517110.5604/01.3001.0055.028201.3001.0055.0282The relationship between audit committee and audit quality: evidence from companies listed on the Warsaw Stock ExchangeAneta Dzik-Walczak0Maria Ociepa1Uniwersytet Warszawski Wydział Nauk Ekonomicznych Katedra Statystyki i EkonometriiUniwersytet Warszawski Faculty of Economic SciencesPurpose: This study investigates whether the presence of an audit committee, the characteristics of the audit committee, and the use of internal audits are linked to higher quality external audit services, approximated by auditor fees. The analysis is conducted in the light of economic theories, including agency theory, transaction cost theory, and the resource-based view. Methodology/approach: Polish companies listed on the Warsaw Stock Exchange are examined. The sample covers the period 2019–2020. Econometric models for panel data, allowing individual effects to be considered, were estimated. To overcome heteroscedas-ticity, the GLS method was used. Findings: Our results reveal the significant influence of audit committee attributes on audit fees. We find that the expertise of audit committee members is related to lower audit fees. Knowledge in the field of finance and accounting was significant, as was fa-miliarity with the industry. Internal audits were also found to be relevant. Companies with an internal audit unit usually pay less for external audits. The positive effect of audit committee independence on audit quality is confirmed. Research limitations/implications: Our findings offer significant insights for regula-tors, policymakers and professionals regarding the role of audit committees in external audit quality. Originality/value: Our unique dataset is undoubtedly a strength of the paper.http://ztr.skwp.pl/gicid/01.3001.0055.0282audit committeecorporate governanceexpertiseexternal audit feesinternal audit |
| spellingShingle | Aneta Dzik-Walczak Maria Ociepa The relationship between audit committee and audit quality: evidence from companies listed on the Warsaw Stock Exchange Zeszyty Teoretyczne Rachunkowości audit committee corporate governance expertise external audit fees internal audit |
| title | The relationship between audit committee and audit quality: evidence from companies listed on the Warsaw Stock Exchange |
| title_full | The relationship between audit committee and audit quality: evidence from companies listed on the Warsaw Stock Exchange |
| title_fullStr | The relationship between audit committee and audit quality: evidence from companies listed on the Warsaw Stock Exchange |
| title_full_unstemmed | The relationship between audit committee and audit quality: evidence from companies listed on the Warsaw Stock Exchange |
| title_short | The relationship between audit committee and audit quality: evidence from companies listed on the Warsaw Stock Exchange |
| title_sort | relationship between audit committee and audit quality evidence from companies listed on the warsaw stock exchange |
| topic | audit committee corporate governance expertise external audit fees internal audit |
| url | http://ztr.skwp.pl/gicid/01.3001.0055.0282 |
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