Reviewing The Impact of International Financial Reporting Standards and Audit Committee on The Financial Reporting Quality.

Abstract

The purpose of this review article is to examine the impact of International Financial Reporting Standards (IFRS) along with audit committee on the financial reporting quality. The theoretical and experimental studies that were conducted were reviewed to determine whether the quality of financial reports had improved or not in a number of countries across the globe. This study emphasizes the importance of the results of previous accounting research studies that show the effectiveness of adopting IFRS and the audit committee in improving the quality of financial reporting, with specific exceptions in some cases. This review article recommends researchers and interested academic and professional bodies to research and shed light on the independent variables and understand their impact on the quality of financial reports by expanding the field of research, especially in those countries that have new experience in adopting international financial reporting standards. Such scientific research would help professional bodies and decision makers identify the advantages and limitations of applying international accounting standards and governance practice such as audit committees. The study also recommends conducting several literature reviews in this field to highlight additional important and influential factors in increasing the quality of financial reports. Keywords: IFRS, audit committee, Financial Reporting Quality.