The Relationship between the Audit Committee and the Financial Performance, the Asset Quality and the Solvency of Banks in Romania

The audit function has an important role in the corporate mechanism especially by extra value conferred to the governance process; thus, over time, this issue was debated assiduously in a series of studies and researches on information transparency at the level of companies. The purpose of this article is to provide a more comprehensive analysis of the relationship between the audit committee (as a guarantor of quality internal audit) and the financial performance, the quality of the portfolio, the solvency and the own funds in the Romanian banking system. Thus, concentrating attention on the features of the audit committee, the authors of this article tried to find answers motivated by the empirical analysis results to the general question: how the various recorded features of the audit committee performance influences the banking system, what is the value added by the quality of internal audit at the level of credit institutions?In order to test the formulated hypotheses, the used research methodology is mainly quantitative, based on the statistical analysis, deductive, and having as starting point in the agency theory, as the objective testing possible links from cause-effect, and analysing the significance level thereof