Audit Committee Effectiveness, Audit Quality, and Internal Control Information Disclosures: An Empirical Study

Abstract

This chapter examined the linkages between audit committees’ effectiveness, audit quality, and internal control information disclosure. Empirical evidence on the effect of audit committee effectiveness and audit quality on internal control information disclosure is scanty. Using a 210 firm-year sample of firms listed on the Ghana Stock Exchange for the period 2013-2017, the chapter tried to fill the research gap. After controlling for board size, proportion of independent directors, and leverage, the results from univariate and multivariate analyses indicated that effective audit committee and audit firm size play complimentary and substitution roles in ensuring internal control information disclosure. Board size and proportion of independent directors were also found to influence the disclosure of quality voluntary information.