Audit Committee Effectiveness and Financial Reporting Quality in Vietnamese Stocks Exchange

Objective: The objective of this research is to examine the connection between the efficiency of the audit committee and the quality of audits on the accuracy of financial reports.Method: The study collected data from annual reports and financial statements of listed companies across three industries on the Vietnamese Stock Exchange between 2015 and 2020. The data was analyzed using a Panel Fixed Effects Model.Result: The findings indicate that the audit committee's effectiveness has a significant positive correlation with the quality of financial reporting. When the audit committee's size increased, the financial reporting quality improved. However, the study discovered that a decrease in financial reporting quality could occur due to discretionary accruals. Furthermore, audit quality was found to have a significant positive relationship with financial reporting quality, as evidenced by an unqualified audit opinion.Conclusion and Recommendation: It could be concluded that financial reporting adheres to accepted accounting standards. Additionally, the size of the board of directors, financial risk, return on assets, and growth were all positively linked to financial reporting quality, as management is encouraged to perform well, thereby enhancing trust among investors and shareholders