The Role of the Audit Committee in Encouraging Strong Corporate Governance and Quality Financial Reporting in the Era of Disruption

Abstract

The role of the audit committee in enhancing corporate governance and improving the quality of financial reporting has gained greater importance, particularly in the disruption era characterized by digital transformation, global crises, and growing regulatory complexity. This study analyzes the contribution of audit committees to corporate governance and financial reporting quality through a literature review of international journals published from last five years. The review reveals that audit committee effectiveness is influenced by factors such as independence, expertise, and meeting frequency. These elements help reduce the risk of financial reporting manipulation and support greater transparency. The evolving business environment emphasizes the strategic role of audit committees as key players in overseeing internal control and risk management systems. Audit committees must now take a more proactive stance and broaden their understanding of digital technologies, sustainability, and non-financial risks. This evolution allows them to act not only as compliance enforcers but also as strategic partners in ensuring accountability and resilience.