Role of Audit Committee in Commerce Law Compliance

Document Type : Research Paper

Authors

1 Instructor, Department of Accounting, Ramhormoz Branch, Payame Noor University, Ramhormoz, Iran

2 Prof, Department of management, Faculty of Social Sciences and Economics, alzahra university, Tehran, iran.

3 Assistant Prof, Department of Accounting, Shoushtar Branch, Islamic Azad University, Shoushtar

10.22051/jaasci.2024.45230.1806

Abstract

Objective: The present research has been conducted with aim of investigating the impact of the audit committee on compliance with the trade law in companies listed on the Tehran Stock Exchange.
Methods: In this research, the information of the financial statements of 140 companies listed to the Tehran Stock Exchange during the years 2012 to 2020 was used. Multivariate regression models with panel data and random effects method were used to test the research hypotheses.
Results: Results of test of the research hypotheses shows of independence of the audit committee, the financial expertise of the audit committee have a significant positive effect on the compliance with the commerce law. Also, the results showed that the size of the audit committee does not have a significant effect on the compliance with the commerce law, and the tenure of the audit committee also has a significant negative effect on the compliance with the commerce law.
Conclusion: The results of the research show, with the increase in the number of independent members of the audit committee, the increase in the number of members with financial expertise in the audit committee increases compliance with the commerce law. Also, the results show that the increase in the number of audit committee members has no effect on compliance with the commerce law in companies. On the other hand, the increase in the number of years of tenure of the members of the audit committee will reduce compliance with the commerce law.

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History

  • Receive Date: 17 October 2023
  • Revise Date: 01 June 2024
  • Accept Date: 01 June 2024

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