Governance mechanisms and audit fees in Islamic banking institutions in Malaysia

The purpose of this study is to examine whether corporate governance mechanisms affect the audit process in terms of audit fees in Islamic banking institutions in Malaysia. The governance mechanisms are the characteristics of board of directors (size and independence), the characteristics of audit c...

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Main Authors:	Ahmad, Maslina, Annuar, Hairul Azlan, Vendy, Vicky
Format:	Monograph
Language:	English
Published:	2019
Subjects:	HF5601 Accounting. Bookkeeping HF5717 Business communication HF5735 Business records management
Online Access:	http://irep.iium.edu.my/74086/ http://irep.iium.edu.my/74086/3/Research%20Report%20-%20IAREF17-05-0016%20short%20version.pdf

id	iium-74086
recordtype	eprints
spelling	iium-740862019-12-01T04:47:58Z http://irep.iium.edu.my/74086/ Governance mechanisms and audit fees in Islamic banking institutions in Malaysia Ahmad, Maslina Annuar, Hairul Azlan Vendy, Vicky HF5601 Accounting. Bookkeeping HF5717 Business communication HF5735 Business records management The purpose of this study is to examine whether corporate governance mechanisms affect the audit process in terms of audit fees in Islamic banking institutions in Malaysia. The governance mechanisms are the characteristics of board of directors (size and independence), the characteristics of audit committee (size, expertise, independence and meetings) and the characteristics of shariah committee (size and expertise). The annual reports of 16 Islamic banks in Malaysia for seven years (2011-2017) were examined. From panel data regression using 112 observations of the study sample, this study finds that audit committee independence and shariah committee expertise have significant association with audit fees. This study provides support for the step up practice recommended in MCCG 2017 regarding the importance of establishing audit committee that comprises solely independent directors. It also suggested that the shariah committee with accounting qualification/background could ensure not only the shariah-compliance of Islamic banking and finance business but also decrease the external audit fees. 2019-08 Monograph NonPeerReviewed application/pdf en http://irep.iium.edu.my/74086/3/Research%20Report%20-%20IAREF17-05-0016%20short%20version.pdf Ahmad, Maslina and Annuar, Hairul Azlan and Vendy, Vicky (2019) Governance mechanisms and audit fees in Islamic banking institutions in Malaysia. Research Report. UNSPECIFIED. (Unpublished)
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HF5601 Accounting. Bookkeeping HF5717 Business communication HF5735 Business records management
spellingShingle	HF5601 Accounting. Bookkeeping HF5717 Business communication HF5735 Business records management Ahmad, Maslina Annuar, Hairul Azlan Vendy, Vicky Governance mechanisms and audit fees in Islamic banking institutions in Malaysia
description	The purpose of this study is to examine whether corporate governance mechanisms affect the audit process in terms of audit fees in Islamic banking institutions in Malaysia. The governance mechanisms are the characteristics of board of directors (size and independence), the characteristics of audit committee (size, expertise, independence and meetings) and the characteristics of shariah committee (size and expertise). The annual reports of 16 Islamic banks in Malaysia for seven years (2011-2017) were examined. From panel data regression using 112 observations of the study sample, this study finds that audit committee independence and shariah committee expertise have significant association with audit fees. This study provides support for the step up practice recommended in MCCG 2017 regarding the importance of establishing audit committee that comprises solely independent directors. It also suggested that the shariah committee with accounting qualification/background could ensure not only the shariah-compliance of Islamic banking and finance business but also decrease the external audit fees.
format	Monograph
author	Ahmad, Maslina Annuar, Hairul Azlan Vendy, Vicky
author_facet	Ahmad, Maslina Annuar, Hairul Azlan Vendy, Vicky
author_sort	Ahmad, Maslina
title	Governance mechanisms and audit fees in Islamic banking institutions in Malaysia
title_short	Governance mechanisms and audit fees in Islamic banking institutions in Malaysia
title_full	Governance mechanisms and audit fees in Islamic banking institutions in Malaysia
title_fullStr	Governance mechanisms and audit fees in Islamic banking institutions in Malaysia
title_full_unstemmed	Governance mechanisms and audit fees in Islamic banking institutions in Malaysia
title_sort	governance mechanisms and audit fees in islamic banking institutions in malaysia
publishDate	2019
url	http://irep.iium.edu.my/74086/ http://irep.iium.edu.my/74086/3/Research%20Report%20-%20IAREF17-05-0016%20short%20version.pdf
first_indexed	2023-09-18T21:44:58Z
last_indexed	2023-09-18T21:44:58Z
_version_	1777413388529303552

Governance mechanisms and audit fees in Islamic banking institutions in Malaysia

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