DLSU Business & Economics Review 29(1) 2019, p. 85-92
Copyright © 2019 by De La Salle University
RESEARCH ARTICLE
A Conceptual Framework for the Mediating Effect
of Audit Quality on the Relationship Between Audit
Committee Attributes and Financial Reporting
Quality
Hussaini Bala
Kaduna State University, Nigeria
hussainumi2013@gmail.com
Noor Afza Amran and Hasnah Shaari
Universiti Utara Malaysia, Malaysia
Prior studies have documented that the complementary functions of audit committees (ACs) with respect to audit quality (AQ)
is complex and goes beyond a direct relationship. This paper aims to propose a framework consistent with the complementary
hypothesis to show the mediating efect of AQ on the relationship between AC attributes and fnancial reporting quality
(FRQ). To achieve this, we reviewed the literature regarding ACs, AQ, and FRQ and found that studies on AC and FRQ
presented mixed results. We also found that there was little evidence regarding the infuence of legal experts and AC public
accounting expertise in ACs. Consequently, this warrants further research. There is a need for future studies to examine our
proposed framework further. Future research should also explore the efects of internal audits and whistle-blowing policy
on frms’ ACs and FRQ.
Keywords: Audit committees, Audit fees, Big 4 auditors, Financial reporting quality, Audit quality
JEL Classifcation- M41, M42, M49