Nonlinear Relationship between Tenure of Audit Committee Members and Audit Fees

The audit committee, as one of the monitoring mechanisms of corporate governance has turned into an important factor in the financial reporting process of companies to prevent manipulation of financial information and increase the validity of financial statements.  The charter of the audit committee approved by the Securities and exchange organization has some paragraphs about the independence and expertise of the audit committee members. Thus, the tenure of office for the audit committee members has been less considered as a feature of the audit committee members. Thus, the present study aimed to investigate the nonlinear relationship between the tenure of audit committee members and audit fees. In order to measure the tenure of office for the audit committee members, the average years of tenure of office for the audit committee members was used. In order to measure the Audit fee of audit fee logarithm was used. The research sample included 110 companies listed on the Tehran Stock Exchange during 2013-2018. Multivariate regression model with panel data through fixed effects method was used to test the research hypothesis. The obtained results indicated that is a non-linear relationship between the tenure of the Audit Committee members and the audit fee.