The Impact of the Audit Committee on Financial Performance in Moroccan SMEs: An Empirical Examination

Abstract

This study investigates the impact of audit committees on the financial performance of Moroccan SMEs, emphasizing the significance
of context and its added value. Additionally, it examines the governance system’s influence on audit committee independence and explores variables related to audit committee characteristics. Drawing from a sample of 58 Moroccan SMEs, the study spans a 4-year period from 2018 to 2022. Through the utilization of regression analysis, findings reveal challenges to the audit committee’s total independence, attributed to a dual system and limited committee size. Consequently, Moroccan SMEs audit committees face constraints in fulfilling their responsibilities, particularly in financial statement review, potentially impeding SMEs financial performance and growth. This research contributes to the understanding of governance dynamics within Moroccan
SMEs, highlighting the importance of context and offering insights into the complexities of audit committees.