Background: It is extremely important that an audit committee (AC) monitors a company’s financial reporting process, and that the committee engages a high-quality auditor to carry this out effectively. Prior research on ACs has paid much attention to the relationship between AC best practices and audit fees (AF). Although compensation is a means of aligning interests between ACs and stakeholders, previous studies have neglected the complementary interaction between AC compensation and compliance with best practices on audit quality. Objectives: The purpose of this study is to investigate how compensation for ACs affects AF, and how the association is moderated by compliance with best practices to capture effective monitoring. Method: The regression models are estimated to verify how the relationship between AC compensation and AF is moderated by AC compliance with best practice. Moreover, the logistic regression models are used to investigate how the relationship between AC compensation and the opportunistic achievement of earnings goals is moderated by AC compliance with best practice. Results: The findings show a positive association between the levels of compensation AC members receive and AF, which is reinforced in firms that have ACs that comply with all best practices. Conclusion: The results suggest that highly paid ACs engage high-quality auditors to complement their function of monitoring management and AC compensation and compliance with best practices are complementary to enhance audit quality. This study thus provides the interesting insights that can be applicable to countries with requirements relating to the compensation schemes for ACs or the formation of the AC.

中文翻译：

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审计委员会薪酬，最佳实践和审计费用

背景：审核委员会（AC）监视公司的财务报告流程，并且聘请高素质的审核员来有效地执行此程序，这一点非常重要。关于AC的先前研究已经非常关注AC最佳实践和审计费用（AF）之间的关系。尽管薪酬是使审计委员会和利益相关者之间利益保持一致的一种手段，但先前的研究忽略了审计委员会薪酬与遵守审计质量最佳实践之间的互补作用。目标：这项研究的目的是调查AC补偿如何影响房颤，以及如何通过遵循最佳实践来监督关联以捕获有效的监控。方法：估计回归模型可以验证AC遵循最佳实践如何缓解AC补偿和AF之间的关系。此外，逻辑回归模型用于研究AC补偿与最佳实践对AC补偿和机会性收入目标实现之间的关系的调节作用。结果：调查结果表明，AC成员获得的补偿水平与AF呈正相关，在拥有符合所有最佳实践的AC的公司中，这一点得到了加强。结论：结果表明，高薪审计师会聘请高素质的审计师来补充其监督管理的职能，审计师资酬和遵守最佳实践可以提高审计质量。