The effectiveness of the oversight role of audit committees in supporting the credibility of financial information

Abstract

This research aims to focus on the vital role audit committees play in corporate governance by enhancing the credibility of financial disclosures. Such committees are regarded as key instruments in promoting an effective, transparent, and efficient operational framework. Their performance is determined by various fundamental factors, including the structure of the committee, the independence of its members, and their proficiency in financial and accounting matters. and their professional background. In addition, clearly outlining their duties and responsibilities is essential. Financial reporting serves as a crucial component in the management of economic entities, acting as a communication bridge both within the organization and with external stakeholders involved in decision-making processes. The findings of the study indicate that audit committees, through their supervisory activities, play a pivotal role in elevating the quality of financial reporting. This is achieved by assessing internal control mechanisms, This involves assessing the work conducted by external auditors, promoting effective collaboration between internal and external audit teams, and steering internal audit activities to ensure they support the broader objectives of the overall audit strategy.