The purpose of this paper is to examine the association between the existence of a risk committee (RC) in a firm and financial reporting quality. We also investigate whether having an RC has an effect on audit pricing. We argue that the existence of an RC in a firm contributes to higher financial reporting quality and this, eventually, affects audit pricing.,This study uses two different proxies for RC measures and investigates the impact on financial reporting quality and audit pricing. Multivariate regression analysis and propensity score matching techniques are both applied to data from the Australian Stock Exchange's listed companies for the years 2001–2013.,The results indicate that the existence of an RC reduces the discretionary accruals; this means the financial reporting quality improves when RCs are in operation. Our findings also indicate that the existence of an RC increases audit fees.,The findings from this study will be beneficial to the regulatory authorities responsible for improving the compliance of corporate governance (CG). An RC can serve as a risk-mitigating tool in the investment decision-making process. Finally, the results are beneficial for the development of best practices in CG by promoting the existence of an RC.,This study goes beyond the traditional focus on CG as we use the existence of an RC as an indicator of better governance practices to mitigate financial and non-financial risk factors. To the best of our knowledge, this paper is among the first to investigate the consequences for firms operating with RCs. This issue has implications for investors, auditors, directors and regulators.

中文翻译：

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财务报告质量，审计费用和风险委员会

本文的目的是检验公司中风险委员会（RC）的存在与财务报告质量之间的关联。我们还调查了拥有RC是否会影响审计定价。我们认为，公司中存在存托凭证有助于提高财务报告质量，最终影响审计定价。本研究使用两个不同的代表来衡量存托凭证，并研究了对财务报告质量和审计定价的影响。多元回归分析和倾向得分匹配技术都应用于澳大利亚证券交易所2001-2013年上市公司的数据。结果表明，存在RC减少了可自由支配应计费用；这意味着当RC运作时，财务报告质量会提高。我们的发现还表明存在RC会增加审计费用。这项研究的发现将对负责改善公司治理（CG）遵从性的监管机构有所帮助。RC可以作为投资决策过程中的风险缓解工具。最后，通过促进存在RC，该结果有利于CG最佳实践的发展。本研究超出了传统的CG重点，因为我们将RC的存在作为更好的治理实践的指标以减轻财务负担。和非财务风险因素。据我们所知，本文是第一个调查对使用RC的公司产生的后果的研究。这个问题对投资者，审计师，董事和监管者有影响。