The effect of audit committee characteristics on conditional conservatism

Abstract

<p>The complex situation incorporate accounting and the growing demand for accountability and the importance of internal controls have highlighted the role of the audit committee. One of the roles of the audit committee that has always been considered by researchers and legislators is the supervisory role of the audit committee on the quality of reported profits. Accordingly, the purpose of this study is to investigate the effect of the characteristics of the audit committee (including financial expertise, independence, experience, and size of the audit committee on conditional conservatism in companies listed on the Tehran Stock Exchange. In this regard, for conservatism Conditionally, Bal and Shivakumar (1997) and Basu (2005) models were used and 137 companies were examined after the statute of the audit committee became mandatory in the period of 2012 to 2014.<br><br></p>