Abstract

According to the necessity of increasing accountability of JS companies towards investors who provide their macro & micro shares in order to gain income to these companies, proper handle of control and supervision on the affairs of JS companies has double importance. In this regard, most of companies have proceeded to establish an auditing committee among the directorate members to have the role of supervisor in the practice and procedure of accounting. An auditing committee is usually consist of 3 to 5 non-obliged managers-a manager who is not one of the companys in charges and not of its employees. The aim of this study is recognizing the role of auditing committee in observing the accounting and auditing standards, the recognition of auditing committee as a supervising factor in the procedure of financial reporting for the quality of financial reporting, is a factor to prevent financial mistakes and the recognition of existence of auditing committee in charge of cheating and non-legal activities of employer, the role of auditing committee in the operation of internal auditor and the structure of internal control and giving reports by internal auditor and also the role of auditing committee in choosing independent auditor and observing the principles of professional behavior of independent auditor. Necessary information to test the hypothesis was gathered on the basis of questionnaire and survey of sample members (partners, managers and supervisors of auditing institutes). The research method is survey. In order to test the hypotheses in this research, the parametric (t single variable) and non-parametric (median, rand mean and chi-square) tests were used. The results of study indicate that the auditing committee has effects on the quality of financial reporting, observing the standards of accounting and auditing principles, share holders claim about the accusation of cheating and non-legal activities of employer, choosing an independent auditor, internal control structure, presenting reports by internal auditor and the operation of internal auditor and the auditing committee has no effects on observing the professional behavior principles of independent auditors.

Keywords: Auditing committee, quality of financial reporting, independent auditing, internal auditing, accounting standards, structure of internal control.

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