Evaluating the Influence of Audit Committee Expertise on the Quality of Risk Assessments

Posted: Sep 09, 2023

• Phoebe Parker
• Tucker Jenkins
• Jaxson Morgan

Abstract

The contemporary corporate landscape is characterized by unprecedented complexity and volatility, necessitating sophisticated risk management frameworks. Within this context, audit committees serve as critical governance mechanisms responsible for overseeing risk assessment processes and ensuring organizational resilience. Traditional research has predominantly focused on binary classifications of audit committee expertise, typically distinguishing between financial experts and non-experts. However, this reductionist approach fails to capture the multidimensional nature of expertise and its nuanced influence on risk assessment quality. This research addresses this gap by introducing a comprehensive computational methodology that quantifies expertise across multiple dimensions and examines its impact on risk assessment outcomes.