Black boxes, red herrings and white powder: UK audit committees in the 21st century

Spira, Laura F.

doi:10.1057/palgrave.jbr.2340012

Cited by 8 publications

(6 citation statements)

References 3 publications

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Section: Audit Committee Effectivenessmentioning

confidence: 99%

“…Despite findings of this nature, Spira (2006) and Gendron et al (2004) assert that research findings from studies into the effectiveness of audit committees should be "interpreted cautiously" (Gendron et al, 2004, p. 155). This is because effectiveness is an "elusive and multidimensional notion that is difficult to measure" (Gendron et al, 2004, p. 155), and conceptions and definitions of effectiveness vary (Spira, 2006). For example, De Zoort et al (2002, p. 6) define audit committee effectiveness by describing the characteristics of an effective audit committee as having "qualified members with the authority and resources to protect stakeholder interests by ensuring reliable financial reporting, internal controls, and risk management through its diligent oversight efforts".…”

Section: Audit Committee Effectivenessmentioning

confidence: 99%

“…For example, De Zoort et al (2002, p. 6) define audit committee effectiveness by describing the characteristics of an effective audit committee as having "qualified members with the authority and resources to protect stakeholder interests by ensuring reliable financial reporting, internal controls, and risk management through its diligent oversight efforts". However, this measure of audit committee effectiveness has been criticised for treating the audit committee as an isolated mechanism which fails to recognise the interdependence of audit committee components in a specific dynamic organisational context (Spira, 2006).…”

Section: Audit Committee Effectivenessmentioning

confidence: 99%

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Audit committee effectiveness: a public sector case study

Magrane

Malthus

2010

Managerial Auditing Journal

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Purpose -The purpose of this paper is to examine the conditions and processes affecting the operation of an audit committee within the context of a New Zealand district health board (DHB). Design/methodology/approach -The methodology used in this paper was exploratory and qualitative, including the analysis of secondary data and semi-structured interviews. Findings -Using the New Zealand Auditor-General's best practice guidelines for a public sector audit committee as a benchmark, the paper finds that the DHB rates moderately well in terms of "effectiveness potential". However, factors are identified concerning the audit committee members' independence, competence, tenure, and remuneration, which impinge upon the overall effectiveness of the audit committee. Despite apparent shortcomings in these areas, the informal networks between audit committee members and management serve to maximise the "realisation" of what potential effectiveness exists. As a result, the audit committee is perceived by its stakeholders (management, auditors, and committee members) as being a valuable tool to assist the DHB board in achieving proper governance. Practical implications -There are no specific regulatory or legislative requirements for establishing audit committees in the New Zealand public sector. The findings from this paper may be useful to public sector entities that are considering establishing an audit committee and to entities, including the one in this paper, that wish to improve the effectiveness of their existing audit committees. Originality/value -Most studies of audit committees to date have focuses on corporate sector entities; this is the first qualitative paper of an audit committee of a public sector entity in New Zealand.

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Section: Audit Committee Effectivenessmentioning

confidence: 99%

Section: Audit Committee Effectivenessmentioning

confidence: 99%

Section: Audit Committee Effectivenessmentioning

confidence: 99%

See 1 more Smart Citation

Audit committee effectiveness: a public sector case study

Magrane

Malthus

2010

Managerial Auditing Journal

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“…2.1.2 The audit committee process perspective. Some qualitative research studies have focused on explaining the process of AC meeting that underlies AC effectiveness (Spira, 1998(Spira, , 1999(Spira, , 2002(Spira, , 2006Gendron and Bedard, 2006;Turley and Zaman, 2007;Beasley et al, 2009;Sulaiman, 2017;Compernolle, 2018). For instance, Spira (1999, p.231) find that The popularity of audit committees may be found in their ceremonial function, which, through a comforting display of concern for corporate governance standards, validates company legitimacy and enables access to resources for survival and growth.…”

Section: Prior Literature On Audit Committee Effectivenessmentioning

confidence: 99%

Audit committee role: formal rituals or effective oversight process?

Oussii

Klibi

Ouertani

2019

MAJ

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Purpose The purpose of this paper is to analyze the perception held by attendees about the role and the effectiveness of their audit committees. Design/methodology/approach The investigation was conducted via a qualitative methodology through the content analysis of interviews conducted with 33 attendees of audit committee meetings of Tunisian listed companies. Findings The findings reveal that audit committees do not have the means to achieve the objectives that they have been given by the legal texts, which are likely to characterize their work as “ceremonial” or “symbolic.” This paper also found that the most significant effects of the audit committee chair’s role come through informal meetings and conversations. Practical implications The paper’s findings have policy implications for regulators. Findings from this research may allow regulators to assess whether the audit committee activities in Tunisian companies meet their expectations. Originality/value This paper tries to fill a gap in the extant literature and provides meaningful information on activities performed by audit committees and the extent to which they are perceived effective in the eyes of attendees of audit-committee meetings. This study is one of the few field investigations that have analyzed audit committees’ effectiveness in emerging markets through interviews with attendees involved in audit-committee processes.

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“…Í Bretlandi er að finna ákvaeði um endurskoðunarnefndir frá 1872. (Spira, 2006). Fyrir-komulagið á þeim tíma virðist hafa verið þannig að endurskoðunarnefnd hafi fengið skýrslu frá ytri endurskoðanda, frekar en að nefndin hafi komið nálaegt endurskoðuninni.…”

Section: Upphaf Og Innleiðingunclassified

Endurskoðunarnefndir: Samsetning og góðir stjórnarhættir

Guðbjartsson¹,

Jonsson²,

Snorrason³

2018

TVE

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Tilgangur greinarinnar er að skoða samsetningu endurskoðunarnefnda m.t.t. markvirkni. Áhersla er lögð á að skoða fjölbreytni, sérfræðiþekkingu og óhæði nefndarmanna. Engar rannsóknir hafa verið gerðar á endurskoðunarnefndum á Íslandi sem miða að því að skoða þætti eins og samsetningu nefnda m.t.t. markvirkni endurskoðunarnefnda. Þar af leiðandi voru þrjár tilgátur settar fram til þess að meta hversu líklegt er að endurskoðunarnefndir íslenskra fyrirtækja séu markvirkar. Tilgáturnar miða að því að skoða samsetningu (e. composition) endurskoðunarnefnda á Íslandi með tilliti til markvirkni þeirra. Samsetning er ein þriggja vídda sem verða að vera til staðar til að markvirkni náist. Bornar eru saman tvær kannanir, annars vegar frá 2012 og hins vegar frá 2016. Framkvæmd kannananna 2012 og 2016 er með sambærilegum hætti og skapast því góður grunnur fyrir samanburð. Einnig er skoðað hvort einhver munur sé á niðurstöðum úr hvorri rannsókn fyrir sig og samanburður er gerður. Tilgangur endurskoðunarnefnda er að tryggja að gæði og áreiðanleiki fjárhagsskýrslna og fjárhagsupplýsinga sé sem mestur, hvort sem um er að ræða skýrslur til stjórnenda félagsins eða til hagsmunaaðila utan félagsins. Tilvist endurskoðunarnefnda tengist því beint góðum stjórnarháttum. Umgjörð og fyrirkomulag endurskoðunarnefnda hefur mikið að segja um hvort þessum tilgangi verði náð eða ekki. Í lögum um ársreikninga nr. 3/2006 er kveðið á um að stjórn viðkomandi einingar sem tengist almannahagsmunum skipi nefndarmenn í endurskoðunarnefnd. Skipunarferli er því mjög mikilvægt og er hluti af góðum stjórnarháttum. Endurskoðunarnefnd fer með hluta af þeim verkefnum sem stjórn hafði áður á sínu borði og tengist því beint góðum stjórnarháttum í fyrirtækjum í gegnum verkefni stjórnar. Kannanirnar 2012 og 2016 voru gerðar meðal stærstu fyrirtækja og stofnana landsins sem falla undir skilgreininguna „einingar tengdar almannahagsmunum”, sbr. lög nr. 79/2008 um endurskoðendur. Rannsóknin bendir til þess að fjölbreytni og sérfræðiþekking hvað varðar samsetningu endurskoðunarnefnda á Íslandi sé viðundandi. Hins vegar er misræmi í niðurstöðum rannsóknarinnar þegar kemur að því að meta óhæði nefndarmanna. Engu að síður má álykta að samsetning endurskoðunarnefnda á Íslandi stuðli að markvirkara starfi þeirra. Samsetning er einn af þremur þáttum er stuðla að markvirkni. Þetta er grundvallaratriði í að skipuleggja og byggja upp starf endurskoðunarnefnda í eftirlitskerfi góðra stjórnarhátta út frá umboðskenningunni.

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Black boxes, red herrings and white powder: UK audit committees in the 21st century

Cited by 8 publications

References 3 publications

Audit committee effectiveness: a public sector case study

Audit committee effectiveness: a public sector case study

Audit committee role: formal rituals or effective oversight process?

Endurskoðunarnefndir: Samsetning og góðir stjórnarhættir

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