The relationship between audit committee and audit quality: evidence from companies listed on the Warsaw Stock Exchange
Year: 2025
Type: article
Abstract: 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.
Authors: Aneta Dzik-Walczak, Maria Ociepa
Institution: University of Warsaw
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: gold
Estimated APC paid: $207
OpenAlex ID: W4408923257