Accounting and auditing knowledge level of Canadian audit committees: Some empirical evidence

Raghunandan, K.; Rama, Dasaratha V.; Scarbrough, D. Paul

doi:10.1016/s1061-9518(98)90013-1

Cited by 37 publications

(24 citation statements)

References 2 publications

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“…According to Abbott et al (), an audit committee that meets frequently can reduce the incidence of financial restatement by meeting frequently with the internal auditor. The audit committee will remain informed and knowledgeable about accounting and auditing issues (Raghunandan, Rama, & Scarbrough, ).…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

Effective association between audit committees and the internal audit function and its impact on financial reporting quality: Empirical evidence from Omani listed firms

et al. 2018

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The role of the audit committee in oversight of the internal control and internal audit function has grown in the last decades as corporate governance mechanisms after the dramatic scandals and failures. This paper examines the impact of the audit committee and the presence of internal audit function on a company's financial reporting quality. Moreover, this study focus on the association between the audit committee and internal audit function and company's financial reporting quality measured as accruals quality and absolute discretionary accruals. It is hypothesized that the financial reporting quality is related to the strength of internal corporate governance mechanisms, including audit committee and internal audit and its association. Different mechanisms are being examined: audit committee size and independence, frequency of meeting, financial literacy, existence of internal audit function and its meeting independently. To test our hypothesis, we employ panel data analysis for 71 nonfinancial firms through 139 observations listed on the Muscat Securities Market during the period of 2013 and 2014. The data used in the analysis were collected from the companies' annual reports published by the Muscat Securities Market. Ordinary least squares is used to regress financial reporting quality linear variables on audit committee and internal audit. The findings suggest that audit committee meetings frequency and the presence of internal audit function positively affect a company's financial reporting quality. Hence, an audit committee that meets more frequently provides effective monitoring of financial reporting and increases the likelihood of discussing and following up any problems and findings in the financial statements and audit reports. Thus, frequent audit committee meetings provide better oversight of the annual accounts. Likewise, the internal audit function is considered an important corporate governance mechanism to safeguard the quality of financial reporting by monitoring organizational risks, assessing internal controls and detecting possible manipulation because the internal auditor evaluates financial procedures. However, results suggest that the relationship between other corporate governance mechanisms and financial reporting quality is not significant.

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Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

Effective association between audit committees and the internal audit function and its impact on financial reporting quality: Empirical evidence from Omani listed firms

et al. 2018

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“…The more frequent the audit committee meeting, the better the quality of auditing and accounting issues and the financial information quality provided to company's management and shareholders, and thus it can reduce the possibility of financial fraud (Abbott, Parker, & Peters, 2004;Raghunandan, Rama, & Scarbrough, 1998) and can increase the effectiveness of firm's management (Menon & Deahl Williams, 1994) as the less frequent number of audit committee meeting may lead to earning misstatements (Beasley, 1996;Beasley, Carcello, Hermanson, & Lapides, 2000). Moreover, a routine of audit committee meeting can reduce the agency problem and information asymmetry as the audit committee can provide a fair and timely financial information to the management, shareholders and potential investors (Al-Mamun, Yasser, Rahman, Wickramasinghe, & Nathan, 2014;DeZoort, Hermanson, Archambeault, & Reed, 2002;Mallin, 2007).…”

Section: Literature Reviewmentioning

confidence: 99%

Committee on board: Does it matter? A study of Indonesian Sharia-listed firms

Fauzi

Basyith

Foo

2017

Cogent Economics & Finance

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Abstract:The committee on board includes audit committee and nomination committee that currently has been questioned as to whether the firm value is also affected by the committees' performance that has been the subject of attention. Apparently, this study is the first to attempt providing an evidence of committees' role on to the extent of its contribution to firm value in the context of Indonesian Sharia-listed firms as the establishment of Islamic-compliance firms is currently experiencing an upward trend in many countries. Hence it is enticing to examine the impact of committee on board as part of corporate governance mechanisms on firm value in the Indonesian Sharia-listed firms. Using an Indonesian Sharia-listed firms which counts for 30 firms in the quarterly period of 2009 to 2015, this study employs a 720 balanced panel, using Generalized Least Square. The results reveal that the audit committee and the nomination committee have a significant impact on firm value (Tobin's Q). The non-significant result for ROA suggesting that the mixed measured of book and market is viewed more reliable for investors as it indicates the overall performance measure. Meanwhile the result of the number of audit committee meeting yielded no significant impact on firm value; this may be due to no restrictions on the number of positions of audit committee serves in firms, therefore,

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“…A real interaction between IA and AC is very important for both (Raghunandan et al , 1998; Bishop et al , 2000; Goodwin, 2003) and, in fact, many guidelines and standards (BRC, 1999; SEC, IIA, 2000) promote such cooperation. Furthermore, some scholars stress its importance for the performance of audit committees (see, for instance, Raghunandan et al , 1998).…”

Section: Formulating the Hypothesesmentioning

confidence: 99%

“…Focusing on IA, the interaction with the AC makes information exchange and data availability easier (Raghunandan et al , 1998; Bishop et al , 2000; Walker, 2004; Mat Zain et al , 2006). The AC monitoring of IA could also help identify problems in IA itself and offer opportunities for improvement.…”

Section: Formulating the Hypothesesmentioning

confidence: 99%

Identifying Organizational Drivers of Internal Audit Effectiveness

Arena¹,

Azzone²

2009

Int J Auditing

294

271

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This study attempts to understand the organizational drivers of internal audit effectiveness in the light of recent changes in the 'mission' of internal auditing and its central role in corporate governance. On the basis of data from 153 Italian companies, our survey shows that the effectiveness of internal auditing is influenced by: (1) the characteristics of the internal audit team, (2) the audit processes and activities, and (3) the organizational links. Internal audit effectiveness increases in particular when the ratio between the number of internal auditors and employees grows, the Chief Audit Executive is affiliated to the Institute of Internal Auditors, the company adopts control risk self-assessment techniques, and the audit committee is involved in the activities of the internal auditors.

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Accounting and auditing knowledge level of Canadian audit committees: Some empirical evidence

Cited by 37 publications

References 2 publications

Effective association between audit committees and the internal audit function and its impact on financial reporting quality: Empirical evidence from Omani listed firms

Effective association between audit committees and the internal audit function and its impact on financial reporting quality: Empirical evidence from Omani listed firms

Committee on board: Does it matter? A study of Indonesian Sharia-listed firms

Identifying Organizational Drivers of Internal Audit Effectiveness

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