Audit Committee Financial Literacy: A Work in Progress

Coates, Douglas J.; Marais, M. Laurentius; Weil, Roman L.

doi:10.1177/0148558x0702200207

Cited by 20 publications

(31 citation statements)

References 7 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…companies with improvements in audit committee financial literacy enjoy superior returns (Coates et al 2007). Other research suggests that not all financial expertise is equal.…”

mentioning

confidence: 99%

Does Audit Committee Accounting Expertise Help to Promote Audit Quality? Evidence from Auditor Reporting of Internal Control Weaknesses

Lisic

Myers²,

Seidel

et al. 2019

Contemporary Accting Res

111

View full text Add to dashboard Cite

In this study, we examine whether audit committee accounting expertise helps to promote audit quality by motivating auditors to conduct diligent internal control audits and make appropriate internal control assessments because audit committee accounting expertise safeguards auditors from dismissal following adverse internal control opinions. Among clients with existing and likely internal control material weaknesses (as proxied by future restatements of audited financial statements), we find a greater likelihood of adverse internal control audit opinions when the audit committee has greater accounting expertise (measured by the proportion of accounting experts on the audit committee). Among all clients, we find a lower likelihood of subsequent auditor dismissal following an adverse internal control audit opinion when the audit committee has greater accounting expertise. In further analyses, we find that this lower likelihood of subsequent auditor dismissal occurs when at least two audit committee members possess accounting expertise. We also find some evidence that CFO influence (but not CEO influence) over the audit committee negates the increased likelihood of adverse internal control opinions when internal control material weaknesses likely exist, as well as the decreased likelihood of auditor dismissal following adverse internal control opinions. These findings have important implications for regulators and corporate nominating committees interested in promoting audit committee effectiveness.

show abstract

“…companies with improvements in audit committee financial literacy enjoy superior returns (Coates et al 2007). Other research suggests that not all financial expertise is equal.…”

mentioning

confidence: 99%

Does Audit Committee Accounting Expertise Help to Promote Audit Quality? Evidence from Auditor Reporting of Internal Control Weaknesses

Lisic

Myers²,

Seidel

et al. 2019

Contemporary Accting Res

111

View full text Add to dashboard Cite

show abstract

“…The results indicate that undergraduate students are also financially illiterate in comparison to the findings of Coates et al (2007) which concluded that both groups lack the appropriate level of financial literacy. Ramasawmy et al (2013) assessed the level of awareness of financial literacy among students at the University of Mauritius.…”

Section: Financial Literacy and Investment Decisionsmentioning

confidence: 64%

“…Lusardi and Mitchell (2011) defined financial literacy as Knowledge of basic financial concepts, such as the working of interest compounding, the difference between nominal and real values, and the basics of risk diversification. On the other hand, Coates et al (2007) indicated that the definition of financial literacy includes the concept of accounting literacy. That is financial literacy is the ability to understand the important accounting judgments that management makes, why management makes them, and how management can use those judgments to manipulate financial statements.…”

Section: Definition Of Financial and Accounting Literacymentioning

confidence: 99%

“…Giacomino, Wall, and Akers (2009) examined the financial literacy among undergraduate accounting and finance students at a private Midwestern university. The writers used an instrument developed and used previously by Coates et al (2007) as an extension to study the financial literacy of corporate board members and MBA students at the University of Chicago.…”

Section: Financial Literacy and Investment Decisionsmentioning

confidence: 99%

See 1 more Smart Citation

Accounting and financial literacy o Participants in UAE Financial Markets

Ibrahim

Haron

2018

ABR

View full text Add to dashboard Cite

This article seeks to explore the relationship between financial and accounting literacy and individual investors' participation in the UAE financial markets. The article has three objectives. First, it measures the level of financial and accounting literacy among investors in the UAE financial markets. Second, it attempted to expand our understanding of how financial and accounting literacy influences investments decisions. Third, it examines the effects of demographic factors, such as age, gender, education, and nationality on investment decisions. The authors used reliability and regression analysis to explore collected data. The results indicate significant effects of the level of literacy among individual investors on thier participation in the UAE financial markets. However, no significant effects were observed for gender, educational level or nationalty.

show abstract

“…10. Coates et al (2007) examine changes in financial literacy of audit committees and find that companies that improved their apparent financial literacy of the audit committee had higher stock returns than those which did not.…”

Section: Literature Overview and Previous Researches About The Importmentioning

confidence: 99%

Audit Committee Practice in the Polish Listed Stock Companies. Present Situation and Development Perspectives

Szczepankowski

2012

Business, Management and Education

View full text Add to dashboard Cite

The audit committee is one of the parts of corporate governance mechanism, which is understood as the relationship between corporate managers, directors and the providers of equity, people and institutions who save and invest their capital to earn the return. This study presents survey research results of audit committee activity in Polish public stock companies quoted on the Warsaw Stock Exchange (WSE). The purpose of this paper is to present the audit committee practice in Poland after 2009. The paper shows that the audit committee practice is still the most problematic issue of transitional Polish corporate governance rules. The survey has shown that the corporate needs and its implementation, and communication with listed companies leave a lot of room for improvement. The paper is based on the documents prepared in 2010 by PricewaterhouseCoopers, the Polish Association of Listed Companies and the Polish Institute of Directors.

show abstract

Audit Committee Financial Literacy: A Work in Progress

Cited by 20 publications

References 7 publications

Does Audit Committee Accounting Expertise Help to Promote Audit Quality? Evidence from Auditor Reporting of Internal Control Weaknesses

Does Audit Committee Accounting Expertise Help to Promote Audit Quality? Evidence from Auditor Reporting of Internal Control Weaknesses

Accounting and financial literacy o Participants in UAE Financial Markets

Audit Committee Practice in the Polish Listed Stock Companies. Present Situation and Development Perspectives

Contact Info

Product

Resources

About