The aim of the paper is to examine the formation of a separate risk management committee (RMC) and its effect on the modified audit report among the non-banking and financial companies listed in Bursa Malaysia. Data was collected from the annual reports of a sample of 300 companies from 2004 until 2009. Both descriptive and multivariate analyses were employed to address the research objectives. The results indicate that a separate RMC is negatively related with the acceptance of the modified audit report. Further, the RMC’s members with independent non-executive status and members with accounting and financial background will also probably reduce the acceptance of the modified audit report. However, losses recorded for previous financial years are likely to increase the issuance of modified audit report by the auditor. The period of auditor engagement with the client and client size will also affect the modified audit report. The findings provide empirical evidence on the development and importance of a separate RMC for the modified audit report.

The aim of this paper is to review existing literature related to the risk management committee attributes (RMC) that can facilitate transactions between board committees and add value to corporations. The emphasis of this study is on RMC as it has become a crucial element, especially after the collapse of large corporations. RMCs have attracted the attention of academics and become one of the important factors that enhance the companies' performance as well as the quality of financial reporting (FRQ), and its demographic attributes are expected to play an important role in corporations. However, prior studies on the area have found inconclusive results and provide several gaps in the literature due to the mixed findings. In addition, prior studies highlight the RMCs attributes that affect corporate's performance and also the reporting quality and provide an urge to conduct more researches in related fields. Taking the period from 2003 to 2021, this paper reviews previous studies and gives a better understanding of RMC's role and future research directions.In addition, this study provides recommendations to the policymakers, regarding the demographic attributes of RMCs that can influence corporate performance and its FRQ. Finally, this review demonstrates that businesses should concentrate on these mechanisms to strengthen their performance and their reporting quality.

The objective of the study is to discuss the roles of board of directors in the establishment of risk management committee for Malaysian's public listed companies. In Malaysia, based on the Malaysian Code on Corporate Governance (MCCG), (2007; 2012) clearly stated the role and responsibility of the board of directors toward the risk management activities. At the Corporate Governance Week 2010 and 2011 as well, the chairman of the Security Commission Malaysia highlighted the responsibility of the board of directors in risk management processes and she expressed concern over the failure of the board of directors to establish appropriate measures for the risk management process in the company. The statement of the chairman of Security Commission Malaysia is in line with MCCG's best practices (2000; 2007; 2012), i.e., the board of directors should identify principle risks and ensure the implementation of an appropriate system to manage these risks.

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Tujuan kajian ini adalah untuk menguji sama ada lembaga pengarah bebas memberi kesan ke atas laporan audit tidak baik bagi syarikat-syarikat bukan perbankan dan kewangan yang berdaftar di Bursa Malaysia. Data dikumpulkan daripada laporan tahunan syarikat-syarikat sebanyak 300 sampel bagi tempoh 2004 sehingga 2009. Kedua-dua analisa descriptive dan multivariate digunakan untuk mencapai objektf-objektif kajian. Hasilnya menunjukkan lembaga pengarah bebas memberi kesan terhadap penerimaan laporan audit tidak baik. Seterusnya, kadar hutang syarikat yang tinggi akan meningkatkan penerimaan laporan audit tidak baik sementara bagi syarikat yang mempunyai banyak cabang perniagaan, penerimaan laporan audit tidak baik berkurang. Walau bagaimanapun, saiz lembaga pengarah dan keuntungan ke atas aset tidak mempengaruhi pengeluaran laporan audit tidak baik oleh juruaudit. Hasil kajian menyediakan bukti ilmiah ke atas perkembangan dan kepentingan lembaga pengarah bebas dan kaitannya kepada laporan audit tidak baik.