The Enchantment of Board Features: A Captivating Exploration into Their Influence on Audit Quality

Abstract

Purpose:  This study aims to determine the effect of board features on the audit quality of companies listed on the Palestine Exchange.

Design/methodology/approach: The study sample included all companies listed on Palestine Stock Exchange during the period extending from 2016 to 2022, and a statistical analysis package (SPSS) was used to test the effects of independent variables, such as board (Size, Diversity, Meetings, and financial expertise) on audit quality.

Findings: The results show that Audit firm size is positively affected by firm size and financial expertise. Another significant positive association exists between some sectors and board financial expertise and audit firm specifications. In addition, there is a significant association between board meetings and audit firm turnover. An adverse statistical significance was found between a firm’s age, sector, leverage, and audit firm size.  Moreover, there is an adverse relationship between board meetings and audit firm specialization. Firm age, board financial expertise, and audit firm turnover.

Originality/value: The distinct socio-economic and cultural setting of Palestine makes this study very significant, differentiating it from research conducted in other areas. This study offers insights into the difficulties and peculiarities of the Palestinian business environment by focusing on the complexities of board structures and their effects on audit quality.