Effect of the Characteristics of the Audit Committee on the Auditor Opinion Applied Study: Listed Banks at the Palestine Exchange

Abstract

This study examines the effect of audit committee characteristics including independency, number of meeting, size and shares owned by audit committee members on the opinion of the external auditor. The study utilized a panel data of six Palestinian listed banks from 2010 to 2016. It also employed Logistic Panel Regression to examine the impact of audit committee characteristics on auditor opinion. The results found a significant relationship of audit committee independence, audit committee size, audit committee meeting and shares owned by audit committee members with external auditor opinion. The study recommends that the concepts of audit committee independence should be defined clearly and there should be no self-interest or benefits for audit committee members so that it can play its role effectively. The study also recommends that Palestinian The study also recommends that legislative authorities work to establish clear criteria for the qualifications required by the members of the audit committees when they are selected, which will enable them to perform their role effectively.