This study extends previous research by empirically investigating the relationship between internal governance monitoring mechanisms and the probability of receiving a qualified audit report. Corporate governance monitoring devices are measured using five alternative proxies: board size, board independence, audit committee size, audit committee independence, and audit committee meeting frequency. The analysis of logistic regression is conducted to test the hypotheses proposed for this study. Using a sample of 121 Australian manufacturing companies listed on the Australian Stock Exchange (ASX), this study adds to the growing body of literature that documents the importance of boards and audit committees' role in monitoring management behavior. This study finds smaller size board of directors appear to more effective than large size boards. In addition, audit committee independence improves the quality of financial reporting leading to receive a clear audit opinion. In regard to control variables, this study provides evidence that Leverage and ROI are important variables in explaining the auditors' propensity to qualify their opinions. Particularly, the study finds a positive (negative) and highly significant (at p