Audit Committee: Iranian Imperative

Audit committees proposed by the Securities Exchange Commission in 1940 following the McKesson and Robbins case initiative didn't culminate in reality till 1960. Development was encouraged by the incidence of litigation involving auditors and directors. Since the middle of 1978, US companies seeking a listing are required to have an audit committee. In recent years, many countries have adopted the audit committee in their environments; however, the Iranian environment is still waiting for that condition. The results of this study show that the existence of an audit committee will improve the quality of financial statements and the correctness of financial information. It will also improve native auditing and accounting standards, as well as internal auditing.