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This study examines how audit committee power influences its effectiveness in financial oversight.

Audit Committee Effectiveness: An Empirical Investigation of the Contribution of Power.

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This study examines how audit committee power influences its effectiveness in financial oversight.
Survey conducted with partners of external audits, internal auditing directors, and CFOs from 90 U.S. corporations.
Linear Structural Relations (LISREL) model employed to test relationships between audit committee power and effectiveness.
Two models analyzed the impact of power dimensions on effectiveness dimensions.
Audit committee effectiveness involves three oversight domains: financial reporting, external auditors, and internal controls.
Key power sources include formal authority and support from top management as critical for effectiveness.
Personal attributes, particularly diligence, emerge as a significant power source.

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Empirical investigation reveals that audit committee power influences effectiveness in corporations, suggesting improved oversight.

Kalbers et al. (1993) studied this question.

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