The Association between Audit Committee Financial Expert Characteristics and Audit Fees

• In Event: Audit Firm and Opinions

Abstract

In this study, we examine the association between the characteristics of audit committee financial experts (hereafter, ACFE) and audit fees. Post-Dodd Frank Act of 2010, we investigate whether certain characteristics of ACFE such as the number of financial experts on the audit committee, their gender, age, educational background, and tenure, contributes to recent changes in audit fees. We assume that audit efficiencies occur in audits of firms with certain ACFE characteristics, thus possibly contributing to changes in audit coverage and subsequent changes in audit fees. We use cross-sectional regression to test our hypotheses.

Authors

• Ayishat Omar, Morgan State University

• Sheela Thiruvadi, Morgan State University

• Bilal Makkawi, Morgan State University