AUDIT QUALITY AND CORPORATE GOVERNANCE: EVIDENCE FROM THE BUCHAREST STOCK EXCHANGE

Corporate governance attributes represent a resort for achieving the quality of the audit process, being a driving force of the entity`s corporate governance mosaic. The aim of this research is to investigate the association between audit quality and corporate governance attributes in the case of Romanian`s listed entities. In order to achieve this goal, a multiple regression was constituted with the following variables: audit quality as a dependent variable, and a series of corporate governance elements as independent variables, while firm size, firm age and industry being designed as controls. The full sample consists of the entities listed on the Bucharest Stock Exchange in the period 2008-2012, compiling both tier I, II and III companies. This research contributes to the existing literature in the area of emerging economies by being the first article that addresses the issue of audit quality and corporate governance attributes at the level of listed companies in Romania, one of the European Union`s emerging economies.