Audit committee chair overlap, chair expertise, and internal auditing practices: Evidence from Malaysia

Does audit committee constrain firms’ risks in Malaysian family manufacturing firms?

“…In the years since the first MCCG ( 2000) was introduced, the code was diligently revised with the objective of strengthening the quality of independent directors and their ability to understand complex business transaction. The quality of independent directors is observed by the increase in the level of training, capping of tenure years and enforcement of legal standards to give more accountability to the independent directors (KPMG, 2017;Wan-Hussin et al, 2021). Due to the increase in the requirements for more qualified independent directors, we propose the following hypothesis:…”

“…KPMG (2017) reports that one of the key weaknesses of the audit committee is poor understanding of the accounting standards and lack of understanding of the business operations and industry. Due to increasingly complex accounting and international trades transaction, there is concern over the qualification of the audit committee members in monitoring firms' operating activities (Wan-Hussin et al, 2021). Previous studies document the appointment of audit committee members on basis of political connection and peer networking.…”

“…Being part of the qualified audit committees' members, the audit committee members should understand the generally accepted accounting principles and be able to give recommendations to the auditors. A qualified professional accountant is deemed essential for an effective audit committee due to surge in complex accounting regulations (Wan-Hussin et al, 2021). Since professional accountants are considered as welltrained accountants and possess the necessary job experience before being recognized as professional accountants, this study aims to understand the effect of professional accountants and its effect of firms risks.…”

“…In Malaysia, corporate governance aims to increase investors’ confidence and growth in the capital market. Thus, Malaysia Government has engaged in numerous reforms in the statutory laws, standards, processes to improve investors’ trust and roles of the audit committees (Wan-Hussin et al , 2021). The Malaysian Government’s efforts in improving corporate governance are reflected by the introduction of MCCG (2000) standard after the 1997 financial crisis.…”

Audit Committee Leadership Attributes and CSR Reporting: Evidence from Jordan

“…This is because these other features, such as educational level, legal expertise, age, and tenure, are more useful in monitoring the more complicated transactions and providing the information required by the firms’ stakeholders. Recent empirical research has explored the effect of the ACC on different aspects of accounting, such as financial reporting quality (Abernathy et al, 2014; Bajra & Čadež, 2018; Tanyi & Smith, 2015); firm’s financial performance (Chaudhry et al, 2020); earnings quality (Ghaleb, Al-Duais, & Hashed, 2021; Jalan et al, 2020); audit report lag (Al-Qublani et al, 2020; Ghafran & Yasmin, 2018); and internal audit practice (Wan-Hussin, Fitri, & Salim, 2021), the relationship between the ACC’s characteristics and CSR practices has not yet been investigated in prior studies but is worth exploring here, since ACC play a vital role in leading and guiding the committee to improve CSR practice more effectively. Therefore, this study bridges the research gap by examining the relationship between ACC leadership attributes (independence, educational level, legal expertise, age, financial expertise, and tenure) and the CSR disclosure level.…”