Effects of Audit Committee Independence, Effectiveness on Audit Quality: Evidence from Yemen

This study investigates the impacts of audit committee independence and effectiveness on audit quality using quantitative research methods. The sample consists of 75 individuals from various roles within the National Trading Company (NATCO) group of companies in Yemen between 2019 and 2023. Data were collected through a Google Form and analyzed using Statistical Package for the Social Sciences (SPSS). The results indicate a positive impact of audit committee independence on audit quality, Audit committee effectiveness also demonstrates a positive relationship with audit quality. Furthermore, a strong positive correlation between audit committee independence and effectiveness on audit quality was observed, highlighting the importance of robust audit committee frameworks in financial reporting credibility. The findings suggest that both audit committee independence and effectiveness contribute positively to audit quality, with independence playing a more critical role. These results align with previous research and underscore the significance of audit committee independence in ensuring high-quality audits. However, limitations such as the restricted study period and examination of only two independent variables suggest avenues for future research. Recommendations include expanding the study period and incorporating additional independent variables to enhance research comprehensiveness.