Investigating the Impact of Audit Committee Characteristics and Internal Control Reporting on Earning Quality

Corporate governance has significant role in today`s accountancy and auditing environment. The role of the Audit Committee and internal controls as corporate governance mechanisms, has become more prominent in recent years. In the present study, the effect of the features of the aforementioned mechanisms ( Audit Committee and internal controls) on the quality of profits has been examined. Data of 159 companies are analyzed for the period of 2011-2017 is under statisticsl test with multivariant regression with OLS approach. According to the results there is significant and positive relationship between independence and technical expertise of the members of the audit committee, and internal control reporting and earning quality which indicates that with increasing independence and expertise of members, as well as the presentation of internal control reports, the quality of earning increases. But there is no significant relationship between the number of members of the audit committee and the earning quality.