Hermanson, D., R., Hurley, P., J., Obermire, K., M. (2024). Audit committee research: Where do we stand, and where we go from here?

Question 1

What AC characteristics are consistently linked to higher audit and financial reporting quality?

Answer 1

Expertise, independence, and diligence.

Question 2

What is the evidence on AC gender diversity?

Answer 2

Generally positive effects on audit quality, though impact may weaken in mandatory diversity environments.

Question 3

How do management ties to AC members affect oversight?

Answer 3

Negatively — such ties are linked to lower audit quality, more earnings management, and greater restatement risk.

Question 4

What are four major emerging challenges for ACs?

Answer 4

• Remote work
• New technologies & cybersecurity
• ESG and climate reporting
• AC workload and role expansion