Comparison of the Effectiveness of Audit Committees in the UK and Turkish Banks

Güneş, Nizamülmülk; Atilgan, M. Serkan

doi:10.5430/ijfr.v7n2p18

Cited by 6 publications

(7 citation statements)

References 23 publications

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“…Also, the number of independent members of the audit committee has a negative impact on bank financial performance. The more member of the independent audit committee, the lower the percentage of ROA, ROE, and NIM (Gunes & Atilgan, 2016;Yasin & Nelson, 2012). Even the audit committees that often doing a meeting do not prevent earning management practices (Zgarni et al, 2018).…”

Section: Discussionmentioning

confidence: 99%

“…Inversely, some previous studies found that audit committee characteristics not improving the quality of financial reporting (Wiralestari & Tanzil, 2015). The number of independent members of the audit committee has a negative impact on bank financial performances as a means of ROA, ROE, and NIM (Gunes & Atilgan, 2016). An audit committee that was often doing a meeting does not prevent earning management practice in the company (Zgarni, Fadhila, & El Gaied, 2018).…”

Section: Introductionmentioning

confidence: 99%

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Audit Committee’s Role in Moderating the Effect of Financial Distress Towards Going Concern Audit Opinion

Widiatami¹,

Tanzil²,

Irawadi³

et al. 2020

IJFR

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Auditors are required to provide services in auditing financial statements presented by management and provide audit opinions on the fairness of the presentation of financial statements. Sometimes, in reality, management and auditors have their interests so that each party can achieve the goals. The conflict of interest appears on the independence of the auditor in issuing audit opinions, especially the audit opinion with the going concern explanatory paragraph. The audit committee, as a supervisory board, will continue to maintain the independence of the auditor in issuing audit opinions with the going concern explanatory paragraph. This study aims to examine the effectiveness of the audit committee in maintaining the independence of external auditors issuing audit opinions, especially the audit opinion with the going concern explanatory paragraph. Based on the purposive sampling method obtained a sample of 168 companies. Testing the hypothesis in this study using logistic regression and moderated regression analysis. The results showed that financial distress had a significant negative effect for the audit opinion with going concern explanatory paragraph. Furthermore, the audit committee was not able to strenghten the relationship of financial distress on the audit opinion with a going-concern explanatory paragraph.

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Section: Discussionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Audit Committee’s Role in Moderating the Effect of Financial Distress Towards Going Concern Audit Opinion

Widiatami¹,

Tanzil²,

Irawadi³

et al. 2020

IJFR

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“…Material facts, if not included, will mislead investors and other stakeholders. Therefore, it is essential to understand that the interpretation and meaningful analysis of financial statements that these basic concepts, hypotheses, principles and conventions used in the preparation must be constantly considered (Gunes & Atilgan, 2016).…”

Section: The Problemmentioning

confidence: 99%

Analysing the influence of accounting conventions on the financial performance of commercial banks in Kenya

Macharia,

Ronald

2023

Econ. manag. sustain.

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The collapse of some commercial banks in Kenya in the recent past has raised the question of the credibility of financial information as a tool for investors to make informed decisions. The study sought to analyse the disclosure practices of accounting conventions on the financial performance of commercial banks in Kenya. The following specific objectives guided the study: to establish the influence of the disclosure, consistency, prudence and materiality of financial reports on the performance of commercial banks in Kenya. A cross-sectional survey was adopted. The target population was 42 respondents who formed the sample size by the census method. The data was collected through questionnaires, secondary data and annual reports and analysed quantitatively and qualitatively. Quantitative data was analysed using descriptive statistics and inferential statistics. The finding shows a moderate positive relationship between disclosure and the performance of commercial banks. The relationship is significant (r = 0.322, p>0.01). The result shows a moderate positive relationship between consistency and performance of commercial banks. The relationship is significant (r = 0.369, p>0.01). The results also show a moderate positive relationship between prudence and the performance of commercial banks at a significance of (r=0.500, p>0.01). On establishing the relationship between materiality and performance of commercial banks, it was found there is a moderate positive relationship with a significance of (r = 0.317, p>0.01). Respondents indicated that the consistency of financial reports has little effect on the net profit of commercial banks. Respondents indicated that prudence of financial reports leads to better organisational performance. The materiality of financial reports affects organisation performance. Prudence in financial reporting affected the decision-making among the investors in the banking industry. The study recommends that commercial banks' management ensure transparency, honesty, consistency and reliability during financial reporting.

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“…Similarly, Aanu et al (2014), Wakaba (2014), Nuhu et al (2017), Zabojnikova (2016) and Amer (2014) have revealed a positive relationship between the AC financial expertise and firm performance. However, Gunes and Atilgan (2016) in Turkish banks and Glover-Akpey and Azembila (2016) in Ghanaian firms have established a negative relationship between AC financial expertise and bank performance.…”

Section: Professional Finance Educationmentioning

confidence: 99%

Audit committee characteristics and bank performance: evidence from India

Gupta

Mahakud

2021

MAJ

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Purpose This study aims to investigate the impact of various audit committee (AC) characteristics on the performance of Indian commercial banks. Additionally, it also analyses the non-linear relationship of AC size and AC chairman tenure with bank performance. Design/methodology/approach A panel data approach has been used in this study. The authors have used the fixed-effect estimation technique to examine the relationship between AC characteristics and bank performance during the period 2009–2010 to 2016–2017. Findings The authors find that the professional financial education of the AC chairman and members positively affects bank performance. the frequency of the AC meetings and audit chair busyness bears an inverse relationship with performance. The findings are more or less consistent across the various bank performance measures and subsamples classified based on the time period and ownership of the banks. Practical implications This study provides insights to policy regulators and policymakers who are entrusted with the establishment of ACs in the banks in light of the ongoing regulatory reforms. Originality/value The study is among one of the early studies, which study the relationship between AC characteristics and bank performance in the light of recent regulatory reforms. It also extends the existing study by considering both public and private banks operating in India.

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Comparison of the Effectiveness of Audit Committees in the UK and Turkish Banks

Cited by 6 publications

References 23 publications

Audit Committee’s Role in Moderating the Effect of Financial Distress Towards Going Concern Audit Opinion

Audit Committee’s Role in Moderating the Effect of Financial Distress Towards Going Concern Audit Opinion

Analysing the influence of accounting conventions on the financial performance of commercial banks in Kenya

Audit committee characteristics and bank performance: evidence from India

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