Factor Influencing and Financial Reporting Quality among Private Sector in Yemen

Abstract

This study has been conducted to investigate the impact of corporate governance mechanisms (audit committee and internal audit) and dependent variable is financial reporting quality. To obtain relevant information the financial reporting quality in Yemen, the researcher conducted a survey and distributed by application. In addition, this study has been 290 respondents in the private sector of Yemen. TO purpose of analyzing, Structural Equation Modelling (SEM) has been employed through Smart PLS software prior to using of SPSS. Audit committee is measured by (size, independence, expertise) and internal audit. The study results reveal that audit committee and internal audit have a significant effect on financial reporting quality. Overall, the results of corporate governance (Audit committee and internal audit) and enhance quality of financial reporting. The expected results for the recent conceptual paper would support the hypotheses that audit committee and internal audit have a positive impact on financial reporting quality. Agency theory was used to underlie the conceptual framework.