Optimizing Financial Auditing through Effective Audit Committees: A Comprehensive Literature Review
Abstract
The proliferation of financial scandals worldwide has sparked a revolution in the way audit quality is conceived and assessed, highlighting the shortcomings of traditional approaches to the preparation and production of financial statements. Faced with this situation, the business and legal communities reacted by introducing new legislation on financial security. The new legislation shifts the focus of audit quality assessment towards an in-depth analysis of the audit process. Collective action has been taken by entrusting this task to the audit committee, which embodies the relational pivot within the control process, interacting in a concerted manner with both the internal and external audit functions. The aim of this article is to quantify the importance of setting up an effective audit committee within a company, by demonstrating the preponderance of its role as a central body in enriching and carrying out the audit mission, as part of an overall audit process.
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