AUDIT COMMITTEE CHARACTERISTICS AND TAX AVOIDANCE

ABSTRACT

This research delves into the relationship between audit committee characteristics and the practice of tax avoidance. The study investigates three specific characteristics: audit size, audit independence, and audit frequency of meetings. Using statistical analysis, the study reveals intriguing findings. Firstly, audit size demonstrates a positive association with tax avoidance, indicating that larger audit sizes correspond to increased tax avoidance practices. This relationship was not only notable but also statistically significant. Secondly, the examination of audit independence reveals a significant positive correlation with tax avoidance. The statistical analysis confirmed this relationship at a significance level of 5%. This suggests that higher levels of audit committee independence coincide with increased tax avoidance practices. Contrastingly, the study uncovers that audit frequency of meetings displays a negative impact on tax avoidance. A higher frequency of audit committee meetings appears to be linked to reduced tax avoidance practices.