The association between accruals quality and the characteristics of accounting experts and mix of expertise on audit committees

Abstract

This study considers how the agency role of accounting experts is influenced by the resource dependence focus of nonaccounting (finance and supervisory) financial experts in audit committees. Using postSarbanes-Oxley data, the results suggest that the business and industry knowledge possessed by finance experts can complement the domain-specific knowledge of accounting experts to promote financial reporting quality. We also find, however, that supervisory experts are unable to constructively apply their business acumen in complementing accounting or finance experts in audit committees. Additionally, this study assumes a deeper view of the agency role of accounting experts to assess how the o..