THE ASSOCIATION BETWEEN THE AUDIT COMMITTEES AND AUDIT FEES

One of the basic considerations and mechanisms in the area of control management and monitoring over public corporations affairs, is the establishment of audit committees. This committee was constituted during the twentieth century so as to create a relationship between the management and an independent auditor and despite the seventy-year background of the audit committee in developed countries, its trend of constitution in Iran has been slow. The objective of this study is to know and become familiarized more with the position and role of the audit committee and also to investigate the relationship between the formulation of this committee with the audit fees and other factors effective in the fees of these audit services. By examining different studies in this area, we realize that the audit committee plays an important role in public corporations and also that the existence of the audit committee helps a great deal to increase the quality of financial statements and ultimately that the audit committee can be effective in the amount of audit fees; but in our country lack of optional deployment of the audit committee by companies on the one hand and the lack of existence of legal requirements by institutions like the Stock Exchange on the other hand, have led to the slow trend of their formulation in companies but by the necessity to observe the audit committee charter and the internal audit activities charter by the Stock Exchange organization in 2013, we can hopefully expect the creation and deployment of audit committee in the future years to have an increasing trend by highlighting the role of a wise, autonomous and operating audit committee; and also hope that this committee can play a substantial role in helping the audit and in increasing the quality of financial statements.

Audit committee,Audit fee,Audit risk, Monitoring