Audit committee financial expertise and audit report lag: Malaysia further insight

Recent audit and financial reporting quality research suggest that audit committee financial expertise is a crucial ingredient for high quality financial reports. However, Malaysian literature has reported no association between audit committee financial expertise and audit report timeliness. Using...

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Main Authors:	Zalailah Salleh, Baatwah, Saeed Rabea, Norsiah Ahmad
Format:	Article
Language:	English
Published:	Penerbit Universiti Kebangsaan Malaysia 2017
Online Access:	http://journalarticle.ukm.my/11973/ http://journalarticle.ukm.my/11973/ http://journalarticle.ukm.my/11973/1/13558-62493-1-PB.pdf

id	ukm-11973
recordtype	eprints
spelling	ukm-119732018-07-26T06:36:29Z http://journalarticle.ukm.my/11973/ Audit committee financial expertise and audit report lag: Malaysia further insight Zalailah Salleh, Baatwah, Saeed Rabea Norsiah Ahmad, Recent audit and financial reporting quality research suggest that audit committee financial expertise is a crucial ingredient for high quality financial reports. However, Malaysian literature has reported no association between audit committee financial expertise and audit report timeliness. Using audit report lag, we examined whether Malaysian audit committee financial expertise is relevant for financial reporting timeliness. Using data from 2005 to 2011 from the top 100 Malaysian companies and the fixed effects panel data approach, we find that audit committee financial expertise is not significantly associated with audit report lag proxies. We further examined this issue with the basic premise that audit committee independence enhances the role of audit committee financial expertise. However, the interaction between these mechanisms shows an insignificant association. Additional investigation reveals that these results are driven by the lack of independence on Malaysian boards. We also find evidence suggesting that neither a large number of subsidiaries nor the quality of financial reporting sufficiently justify the recent Malaysian reforms relating to the financial reporting timeframe. Penerbit Universiti Kebangsaan Malaysia 2017 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/11973/1/13558-62493-1-PB.pdf Zalailah Salleh, and Baatwah, Saeed Rabea and Norsiah Ahmad, (2017) Audit committee financial expertise and audit report lag: Malaysia further insight. Asian Journal of Accounting and Governance, 8 . pp. 137-150. ISSN 2180-3838 http://ejournal.ukm.my/ajac/issue/view/1033
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Kebangasaan Malaysia
building	UKM Institutional Repository
collection	Online Access
language	English
description	Recent audit and financial reporting quality research suggest that audit committee financial expertise is a crucial ingredient for high quality financial reports. However, Malaysian literature has reported no association between audit committee financial expertise and audit report timeliness. Using audit report lag, we examined whether Malaysian audit committee financial expertise is relevant for financial reporting timeliness. Using data from 2005 to 2011 from the top 100 Malaysian companies and the fixed effects panel data approach, we find that audit committee financial expertise is not significantly associated with audit report lag proxies. We further examined this issue with the basic premise that audit committee independence enhances the role of audit committee financial expertise. However, the interaction between these mechanisms shows an insignificant association. Additional investigation reveals that these results are driven by the lack of independence on Malaysian boards. We also find evidence suggesting that neither a large number of subsidiaries nor the quality of financial reporting sufficiently justify the recent Malaysian reforms relating to the financial reporting timeframe.
format	Article
author	Zalailah Salleh, Baatwah, Saeed Rabea Norsiah Ahmad,
spellingShingle	Zalailah Salleh, Baatwah, Saeed Rabea Norsiah Ahmad, Audit committee financial expertise and audit report lag: Malaysia further insight
author_facet	Zalailah Salleh, Baatwah, Saeed Rabea Norsiah Ahmad,
author_sort	Zalailah Salleh,
title	Audit committee financial expertise and audit report lag: Malaysia further insight
title_short	Audit committee financial expertise and audit report lag: Malaysia further insight
title_full	Audit committee financial expertise and audit report lag: Malaysia further insight
title_fullStr	Audit committee financial expertise and audit report lag: Malaysia further insight
title_full_unstemmed	Audit committee financial expertise and audit report lag: Malaysia further insight
title_sort	audit committee financial expertise and audit report lag: malaysia further insight
publisher	Penerbit Universiti Kebangsaan Malaysia
publishDate	2017
url	http://journalarticle.ukm.my/11973/ http://journalarticle.ukm.my/11973/ http://journalarticle.ukm.my/11973/1/13558-62493-1-PB.pdf
first_indexed	2023-09-18T20:01:34Z
last_indexed	2023-09-18T20:01:34Z
_version_	1777406883213082624

Audit committee financial expertise and audit report lag: Malaysia further insight

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