scholarly journals Establishing the relationship between an effective audit committee and infusion of a good control environment

2017 ◽  
Vol 13 (3) ◽  
pp. 52-58 ◽  
Author(s):  
Zandile Virtue Dlamini ◽  
Emmanuel Mutambara ◽  
Akwesi Assensoh-Kodua
Keyword(s):  
Audit Committee ◽  
Good Governance ◽  
Good Control ◽  
Working Environment ◽  
Audit Committees ◽  
Control Environment ◽  
Public And Private ◽  
Control Structures ◽  
Effective Performance ◽  
The Relationship

Audit Committees are a vital component of accountability and good governance for any serious organisation and have progressively been perceived as an integral part of modern control structures and control practices in both the public and private sectors. However, Audit Committees can only discharge such gigantic responsibilities in a conducive environment to provide its effective performance of certain key functions in the areas of oversight of risk management, reporting, and internal controls. Nonetheless, the enablement of such conducive environments has become a challenge to many Audit Committees. It is against this background that this study investigates the relationship between an effective audit committee and infusion of a good control environment. The study used structured and unstructured questions to investigate population comprising standing committee members and Audit Committee members. Thus this study made use of a mixed methodology to collect quantitative data as well as reviewing audit documents, such as, the Audit Committee Charter and minutes of meetings in order to ascertain the environment under which such august practices are performed. The outcome concludes that the Audit Committee which was selected for the study has the good working environment.

scholarly journals KOMITE AUDIT UNTUK MENINGKATKAN TATA KELOLA PEMERINTAHAN DAN PENYAJIAN LAPORAN KEUANGAN DALAM RANGKA PENINGKATAN KINERJA PEMERINTAH DAERAH (STUDI KASUS PEMERINTAH DAERAH KABUPATEN BELITUNG)

2014 ◽  
Vol 1 (1) ◽  
pp. 1
Author(s):  
Alexander Ikhsan ◽  
Antar MT Sianturi
Keyword(s):  
Local Government ◽  
Audit Committee ◽  
Good Governance ◽  
Financial Statements ◽  
Financial Statement ◽  
Audit Committees ◽  
Government Performance ◽  
Qualitative Descriptive ◽  
Improved Performance

This research is a qualitative descriptive study entitled “Audit Committee to Improve Governance and Financial Statement in order to Improved Performance of Local Government (Case Study of District Government Belitung)”. The purpose of this study was to determine how much influence of the audit committee in the local government in order to improve governance and the quality of local government financial statement, and its associations with local government performance. Measuring the importance of the audit committee, which was measured using interviews with 15 respondents who have an influence on governance in the Belitung District Based on these results, we can conclude that audit committees in local government will improve the governance and the quality of local government financial statements presentation. And from the results of this study also found that the good governance and quality of local government financial statements presentation will improve the overall local government performance

scholarly journals Corporate Governance and Performance of Audit Committee and Internal Audit Functions in an Emerging Economy’s Public Sector

2020 ◽  
Vol 13 (1) ◽  
pp. 85-98
Author(s):  
Shewangu Dzomira
Keyword(s):  
Corporate Governance ◽  
Public Sector ◽  
Audit Committee ◽  
Qualitative Content Analysis ◽  
Internal Audit ◽  
Audit Committees ◽  
The Public ◽  
Effective Performance ◽  
And Performance ◽  
Management Audit

This article seeks to examine corporate governance and the performance of audit committee and internal audit functions in an emerging economy’s public sector. These two functions form a part of imperative corporate governance aspects, and their effective performance ensures better service delivery by public sector agencies. The study is premised on stakeholder theory, which has turned out to be the central point of public sector discourses. The study is based on qualitative content analysis, which aspires to present information about corporate governance and effectiveness of audit committees and internal audit units in South Africa’s public sector. The findings suggest that there is good corporate governance in terms of the existence of audit committees and internal audit functions in the public sector. However, the results suggest that the audit committees and internal audit units in South Africa’s public sector are not effective. Absence of advice, implementation of recommendations and inadequacy of resources have undermined the performance of audit committees and internal audit units in South Africa’s public sector. The leadership and other assurance bringers ought to consider the findings elevated by the audit committees and internal audit and execute their commendation. Their findings should be urbanised into action plans that are implemented by management. Audit committees must improve their oversight on internal audit functions so that both units would effectively perform. The subsistence of successful audit committee and internal audit components in the public sector certifies proficient and effectual exploitation of resources for the gain of all stakeholders.

scholarly journals Gender Diversity of Audit Committees and Audit Fees: Evidence from Chinese Listed Companies

2015 ◽  
Vol 7 (2) ◽  
pp. 239 ◽  
Author(s):  
Rui Xiang ◽  
Meng Qin ◽  
Craig A Peterson
Keyword(s):  
Audit Committee ◽  
Gender Diversity ◽  
Audit Fees ◽  
Listed Companies ◽  
Audit Committees ◽  
Men And Women ◽  
Public Company ◽  
Chinese Listed Companies ◽  
State Enterprises ◽  
The Relationship

<p>This paper investigates whether women, who serve on the audit committee of the board, can have a significant impact in reducing audit fees paid by China's A-share listed companies during the period 2004 to 2007. We show that audit committees composed of both men and women pay significantly smaller audit fees. The relationship is significantly greater in non-state enterprises than that exhibited by state-owned enterprises and significantly greater in companies deemed to have weak management vis-à-vis strong management. Further analysis shows that the composition of the committee is irrelevant when management is strong, regardless of whether it provides guidance for a state-owned enterprise or a strictly public company. When management is deemed weak, however, gender diversity is associated with smaller fees.</p>

scholarly journals Corporate governance, external audit and the audit process

2009 ◽  
Vol 6 (4) ◽  
pp. 309-316
Author(s):  
Hashanah Ismail
Keyword(s):  
Corporate Governance ◽  
Internal Control ◽  
Good Governance ◽  
Audit Committees ◽  
Control Environment ◽  
Audit Process ◽  
External Audit ◽  
Audit Risk ◽  
Risk Framework ◽  
Governance Practice

This paper reports on interviews with audit partners of listed companies on their perspectives of impact of corporate governance on the audit process. Based on responses received the study finds that audit risk framework is dynamic enough to incorporate expected changes in control environment brought about by greater consciousness on the part of directors on the need for good internal control. However there is still skepticism that good governance practice has filtered through clients’ control environment as auditors believe dominant CEO’s may still moderate the effectiveness of audit committees

scholarly journals The Effect of Audit Committees on the Sustainability of Financial Inclusion Transactions in Saudi Banks in the Light of the Saudi Vision 2030: أثر لجان المراجعة في استدامة الشمول المالي بالمصارف السعودية في إطار رؤية المملكة 2030م

2021 ◽  
Vol 5 (13) ◽  
pp. 109-90
Author(s):  
Rasha Abdulrhman Fallatah Rasha Abdulrhman Fallatah
Keyword(s):  
Saudi Arabia ◽  
Audit Committee ◽  
Negative Relationship ◽  
Financial Inclusion ◽  
Audit Committees ◽  
Banking Business ◽  
Vision 2030 ◽  
Bank Employees ◽  
The Relationship

This study aims to examine the relationship between the roles of audit committee and the satiability of financial inclusion in banking sectors in Saudi Arabia. The researcher used the descriptive analytical approach to achieve the aims of the study, and the questionnaire was the tool of the study which applied to (60) of bank employees and managers in Saudi Arabia. The results revealed that there is positive relationship between the role of audit committee in Saudis’ banks and the satiability of financial inclusion with (0.003) less than (0.005) While, there are negative relationship between the satiability of financial inclusion and audit committee meetings, experiences, and the independency of audit committee members (0.400), (0.841) (0.105). Directing the interest of Saudi banks towards designing the objectives of the audit committees in a manner consistent with the requirements of the banking business and in accordance with the goals of Vision 2030.

Preliminary evidence on the relationship between corporate governance attributes and audit committee functionality in Egypt: beyond checking the box

2014 ◽  
Vol 14 (2) ◽  
pp. 197-210 ◽  
Author(s):  
Ahmed Abdel-Meguid ◽  
Khaled Samaha ◽  
Khaled Dahawy
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Stock Exchange ◽  
Preliminary Evidence ◽  
Audit Committees ◽  
Board Independence ◽  
Regulatory Requirements ◽  
Content Type ◽  
The Relationship ◽  
Egyptian Stock Exchange

Purpose – This exploratory study aims to provide preliminary evidence regarding the non-audit committee corporate governance determinants of audit committee functionality. Design/methodology/approach – The study is based on archival accounting, corporate governance data, and interviews of subjects of the top 100 companies listed on the Egyptian Stock Exchange (EGX100). A logistic regression is used to identify the non-audit committee governance attributes that affect the likelihood of of having a functional audit committee. Findings – Board size and board independence, (CEO-chairman duality) are positively (negatively) related to audit committee functionality, suggesting complementary governance relations. On the other hand, the authors document a negative relation between auditor type (Big4) and audit committee functionality indicating a substitutive governance effect. Originality/value – To the best of the authors' knowledge, this is the first study that explores the actual functioning of audit committees in Egypt beyond mere regulatory requirements. The study highlights the importance of assuring that the “spirit” of corporate governance laws and regulations is adhered to rather than the mere compliance with their “letter”.

scholarly journals INTELLECTUAL CAPITAL DISCLOSURES AND AUDIT COMPONENTS IN NON-DISCRETIONARY INCOME

2019 ◽  
Vol 9 (1) ◽  
pp. 124
Author(s):  
Saarce Elsye Hatane ◽  
Dewi Rembulan ◽  
Josua Tarigan
Keyword(s):  
Firm Performance ◽  
Intellectual Capital ◽  
Audit Committee ◽  
Audit Quality ◽  
Random Effect ◽  
Random Effect Model ◽  
Audit Committees ◽  
Net Income ◽  
The Impact ◽  
The Relationship

This study aims to determine the relationship of Intellectual Capital Disclosures (ICD), audit committee characteristics (size, gender, education, expertise), and audit quality toward the performance of the company measured through Non-Discretionary Net Income (NDNI) and Cash Flow Operation (CFO). This study is conducted on service listed companies in the Indonesia Stock Exchange (Service Industry) from 2010 to 2016 by panel data regression method analyzed using random effect model. The results of this study indicate that components in ICD have no significant impact on firm performance. Some components in the audit committees are found to have significant positive relationship towards financial performance. The empirical results suggest that ICD serve as a tool in aiding firm performance. A corporation should practice ICD extensively to enjoy the impact on the firm performance and value. Most research studies the relationship between intellectual capital disclosures and board diversity toward firm performance individually. The interaction of intellectual capital disclosures and audit committee characteristics is analyzed and studied to see whether audit committee characteristics is a factor that can help and improve the effectiveness of firm performance. Audit quality is also being analyzed and being taken into consideration as a variable. This is the first study to find the relationship towards the firm performance using NDNI and CFO as the dependent variables

scholarly journals Audit committees and insider trading at U.S. banks

2011 ◽  
Vol 8 (2, Special issue) ◽  
pp. 14-31
Author(s):  
Brian Bolton
Keyword(s):  
Firm Performance ◽  
Insider Trading ◽  
Commercial Banks ◽  
Audit Committee ◽  
Financial Statement ◽  
Audit Committees ◽  
Loan Loss ◽  
Financial Problems ◽  
Financial Condition ◽  
The Relationship

This paper studies the relationship between insider stock trades by audit committee members and financial concerns at U.S. banks during the 2000s. We initially show that banks with large amounts of discretionary loan loss accruals experience larger stock sales by audit committee members. These stock sales are then associated with banks experiencing subsequent financial problems, measured by firm performance, restatements, and the likelihood of receiving TARP assistance in 2008 and 2009. This suggests that legal insider trading by audit committee members can provide information about a bank’s financial condition and financial statement quality. While this study is focused on commercial banks, the results likely apply to larger samples and to trading by other classes of insiders.

scholarly journals The Relationship between Audit Committee Best Practice and Good Governance

2021 ◽  
Vol 7 (3) ◽  
pp. 158-183
Author(s):  
Lourens J. Erasmus ◽  
Philna Coetzee ◽  
Adéle du Preez ◽  
Clara D. Msiza
Keyword(s):  
Audit Committee ◽  
Best Practice ◽  
Good Governance ◽  
The Relationship

scholarly journals The impact of external auditor size on the relationship between audit committee effectiveness and earnings management

2018 ◽  
Vol 15 (3) ◽  
pp. 122-130 ◽  
Author(s):  
Mohammed Ibrahim Idris ◽  
Yousef Ibrahim Abu Siam ◽  
Ahmad Lutfi Ahmad
Keyword(s):  
Earnings Management ◽  
Audit Committee ◽  
Good Governance ◽  
Negative Impact ◽  
Stock Exchange ◽  
Management Policy ◽  
Positive Interaction ◽  
External Auditor ◽  
The Impact ◽  
The Relationship

This research aims to explore new evidence on the nature of the relationship between the effectiveness of audit committee and earnings management in one of the emerging economies, Jordan. In addition, it investigates how external auditor size might moderate this relationship. For this purpose, a panel data consisting of 64 industrial firms listed on Amman Stock Exchange (ASE) is used, covering the period between 2009 and 2014. An index consisting of four characteristics is developed to measure the effectiveness of audit committee, namely audit committee independence, size, meetings and financial expertise. Results show that audit committee effectiveness has a significant and negative impact on earnings management. Moreover, a positive interaction effect of external auditor size and audit committee effectiveness on earnings management is found, which is supportive of the substitute relationship between the external auditor size and effective audit committee in reducing earnings management. Policy makers and professional accounting bodies in Jordan might benefit from these results, as they show that legislative reforms can motivate firms to adopt good governance practices to mitigate earnings management.

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