Audit committee effectiveness and internal audit: an empirical investigation with audit quality

Increased concerns regarding corporate accountability in various developed nations have been associated with the need for effective audit committee and internal control systems. This is due to large corporate collapses which have demonstrated problems with the quality of financial reporting and aud...

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Main Authors:	Puat Nelson, Sherliza, Mat Yasin, Siti Fatimah
Format:	Conference or Workshop Item
Language:	English English
Published:	2012
Subjects:	H96 Public policy (General), Policy sciences
Online Access:	http://irep.iium.edu.my/20304/ http://irep.iium.edu.my/20304/ http://irep.iium.edu.my/20304/1/Audit_Committee_Effectiveness_and_Internal_Audit2.pdf http://irep.iium.edu.my/20304/4/sherliza.pdf

id	iium-20304
recordtype	eprints
spelling	iium-203042012-07-27T02:18:51Z http://irep.iium.edu.my/20304/ Audit committee effectiveness and internal audit: an empirical investigation with audit quality Puat Nelson, Sherliza Mat Yasin, Siti Fatimah H96 Public policy (General), Policy sciences Increased concerns regarding corporate accountability in various developed nations have been associated with the need for effective audit committee and internal control systems. This is due to large corporate collapses which have demonstrated problems with the quality of financial reporting and auditing. This study examines the nature and extent of the relationship between audit committee characteristics and internal audit function characteristics with audit quality whereby audit fee is used as a proxy for audit quality. The corporate governance characteristics included in this study are audit committee expertise, frequency of audit committee meetings, structure of internal audit function and size of internal audit function. This study formulated six hypotheses that guided the analysis and using publicly available information of 200 Malaysian public listed companies for the financial year end 2009 and 2010 each. This study provides recent evidence of a positive relationship between audit quality and two audit committee characteristics: audit committee with postgraduate qualification and frequency of audit committee meeting. Further, a positive relationship is found between audit quality and internal audit function characteristic, which is size of internal audit function. Apart from contributing to the literature on corporate governance and audit quality, this study may serve as an input for the regulator to encourage strict enforcement for Malaysian-listed companies to incorporate corporate governance practices especially on audit committee composition and internal audit function. Finally, it highlights the call for continuous education for directors, to become more resourceful in order to improve relationship with auditors. 2012 Conference or Workshop Item PeerReviewed application/pdf en http://irep.iium.edu.my/20304/1/Audit_Committee_Effectiveness_and_Internal_Audit2.pdf application/pdf en http://irep.iium.edu.my/20304/4/sherliza.pdf Puat Nelson, Sherliza and Mat Yasin, Siti Fatimah (2012) Audit committee effectiveness and internal audit: an empirical investigation with audit quality. In: 2nd Accounting Education Conference (AREC) 2012, 22-23 February 2012, UiTM Alam, Selangor. (Unpublished) http://ari.uitm.edu.my/conferences/2012/719-2nd-accounting-academic-conference-2012.html
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English
topic	H96 Public policy (General), Policy sciences
spellingShingle	H96 Public policy (General), Policy sciences Puat Nelson, Sherliza Mat Yasin, Siti Fatimah Audit committee effectiveness and internal audit: an empirical investigation with audit quality
description	Increased concerns regarding corporate accountability in various developed nations have been associated with the need for effective audit committee and internal control systems. This is due to large corporate collapses which have demonstrated problems with the quality of financial reporting and auditing. This study examines the nature and extent of the relationship between audit committee characteristics and internal audit function characteristics with audit quality whereby audit fee is used as a proxy for audit quality. The corporate governance characteristics included in this study are audit committee expertise, frequency of audit committee meetings, structure of internal audit function and size of internal audit function. This study formulated six hypotheses that guided the analysis and using publicly available information of 200 Malaysian public listed companies for the financial year end 2009 and 2010 each. This study provides recent evidence of a positive relationship between audit quality and two audit committee characteristics: audit committee with postgraduate qualification and frequency of audit committee meeting. Further, a positive relationship is found between audit quality and internal audit function characteristic, which is size of internal audit function. Apart from contributing to the literature on corporate governance and audit quality, this study may serve as an input for the regulator to encourage strict enforcement for Malaysian-listed companies to incorporate corporate governance practices especially on audit committee composition and internal audit function. Finally, it highlights the call for continuous education for directors, to become more resourceful in order to improve relationship with auditors.
format	Conference or Workshop Item
author	Puat Nelson, Sherliza Mat Yasin, Siti Fatimah
author_facet	Puat Nelson, Sherliza Mat Yasin, Siti Fatimah
author_sort	Puat Nelson, Sherliza
title	Audit committee effectiveness and internal audit: an empirical investigation with audit quality
title_short	Audit committee effectiveness and internal audit: an empirical investigation with audit quality
title_full	Audit committee effectiveness and internal audit: an empirical investigation with audit quality
title_fullStr	Audit committee effectiveness and internal audit: an empirical investigation with audit quality
title_full_unstemmed	Audit committee effectiveness and internal audit: an empirical investigation with audit quality
title_sort	audit committee effectiveness and internal audit: an empirical investigation with audit quality
publishDate	2012
url	http://irep.iium.edu.my/20304/ http://irep.iium.edu.my/20304/ http://irep.iium.edu.my/20304/1/Audit_Committee_Effectiveness_and_Internal_Audit2.pdf http://irep.iium.edu.my/20304/4/sherliza.pdf
first_indexed	2023-09-18T20:30:25Z
last_indexed	2023-09-18T20:30:25Z
_version_	1777408698967130112

Audit committee effectiveness and internal audit: an empirical investigation with audit quality

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