Corporate Governance Structure and Its Relationship with Audit Fee-Evidence from Malaysian Public Listed Companies

Husnin, Azrul Ihsan; Nawawi, Abdul Hadi; Salin, Ahmad Saiful Azlin Puteh

doi:10.5539/ass.v9n15p305

Cited by 9 publications

(2 citation statements)

References 42 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…In private sector such as for the public listed company, accountability and good governance mechanism are importance to protect the right of the shareholders and other stakeholders (Hamid et al, 2011). This can be done via reliable financial reporting (Asmuni et al, 2015;Saudagaran and Diga, 1997), higher quality of the statutory audit (Husnin et al, 2016;Knechel et al, 2013;Goodwin-Stewart and Kent, 2006), audit committee monitoring (Pandit et al, 2017;Husnin et al, 2013;Klein, 2002), voluntary non-financial information disclosure (Schoenfeld, 2017;Jaafar et al, 2014;Hashim et al, 2014;Eng and Mak, 2003), linked pay-forperformance of directors' remuneration (Madlela and Cassim, 2017;Ahmad et al, 2016;Gregg et al, 1993) and good control system (Chen et al, 2017;Suhaimi et al, 2016;Doyle et al, 2007). However, managing public fund in public sector is not easy because it involves tax payers' money, and hence, requires heavier accountability.…”

Section: Literature Review 21 Accountability From Public Sector Persp...mentioning

confidence: 99%

The effectiveness of payroll system in the public sector to prevent fraud

Yusuf¹,

Nawawi

Salin

2020

JFC

View full text Add to dashboard Cite

Purpose The purpose of this paper is as follows: first, to analyze the opinion of the civil servant or payroll personnel towards the payroll system that currently used by the government. Second, to investigate the control measures currently exist in the payroll system and third, to examine any loopholes that may create opportunities for fraud to occur in that payroll system. Design/methodology/approach This study involves a survey of questionnaires to the department’s personnel that act as respondents. One government department has been selected as a case study in this research. This study was focussing on the payroll administration unit that responsible for all personnel payroll operation and administration. Findings The study concludes that payroll system has equipped with the security and control characteristic. However, there is still a risk of fraud due to some internal control weaknesses in the system. Thus, the awareness about the control and security of the system should be given priority so that the staffs will understand and aware about it. Research limitations/implications The study provides some evidence to indicate a weak and ineffective control measure in the payroll system that may lead to the fraud. Thus, by detail examination of the problems, the prevention and corrective action can be done in combating fraud. However, this study suffered from the small number of samples and limited access to the relevant documents due to confidentiality of the data. Practical implications This study reveals that there are a few key internal control points that can be enhanced to facilitate better protection of payroll expenses in combating fraud in the government department. These include clear segregation of duties, stricter approval process and highly protected personnel information. In addition, adoption of whistleblowing channel, established internal audit function and severe punishment to the wrongdoers also can be implemented. Originality/value This study is original as it examines fraud and malpractices issues that specific for payroll department in the government department that rare in literature.

show abstract

Section: Literature Review 21 Accountability From Public Sector Persp...mentioning

confidence: 99%

The effectiveness of payroll system in the public sector to prevent fraud

Yusuf¹,

Nawawi

Salin

2020

JFC

View full text Add to dashboard Cite

show abstract

“…Likewise, Farooq et al (2018) examined five years data of KSE-100 and found effective board quality has positive association but audit committee effectiveness reduces the external audit fee. Husnin et al (2013) scrutinized internal corporate governance mechanisms with audit fee in Malaysia and found that the Malaysian Code of Corporate Governance influenced the determinants of audit fee. Hamza (2018) studied 26 Jordanian insurance companies and found significant impact of corporate governance principles on the auditor's independence and audit fees.…”

Section: Introductionmentioning

confidence: 99%

Corporate Governance and Audit Fees Evidence from Bangladeshi Listed Banks and NBFIs

Ghosh

2019

JCGR

View full text Add to dashboard Cite

The study examines influence of corporate governance mechanisms on audit fees in listed Bangladeshi banks and non-bank financial institutions (NBFIs) with Dhaka Stock Exchange. Data have been collected from published annual reports of the 46 firms covering the period of 2013-2017. Among them 30 firms are banking companies the remaining firms belong to NBFIs. Using fixed-effect model, the study finds that board independence, female member representation in board, board diligence as well as audit committee diligence have positive influence on audit fees. As opposed to previous literature, the study reports that in the context of Bangladeshi banks and NBFIs board size, audit committee size, audit committee independence are negatively associated with audit fees.

show abstract

Corporate governance and auditor quality – Malaysian evidence

Husnin

Nawawi

Salin

2016

Asian Review of Accounting

Self Cite

View full text Add to dashboard Cite

Purpose The purpose of this paper is to conduct an investigation into the relationship between a firm’s corporate governance mechanisms (audit committee composition and operation, block shareholder, CEO duality, financial state, ownership dominance, political connection, share price, and family control) and auditor quality selection in Malaysia, for periods before and after the introduction of Malaysian Code of Corporate Governance in 2007 (MCCG 2007). Design/methodology/approach 300 companies listed on the Malaysian Stock Exchange from 2006 to 2008 were selected. A Binary regression method was used to analyse the data collected from both annual reports and financial databases. Findings The study has found that in general, MCCG 2007 influenced auditor selection through restructuring of corporate governance tools, such as audit committees and internal audit functions. Research limitations/implications Results have provided evidence that the restructuring of corporate governance may contribute and drive company to enhance the quality of the audit performed by selecting better quality auditor and/or improvising the audit related functions within the company such as formalising internal audit function. This study, however, employed an archival method of study and only used three years (2006, 2007 and 2008) of data analysis. Future research should analyse data from a longer period and utilize a field survey to understand reasons for auditor selection from the company perspective. Originality/value Building on previous studies, this study contributes to the current body of knowledge as it also considers the objective from the perspective of the revised MCCG 2007. It examines whether the introduction of new or revised corporate governance guidelines may immediately impact company auditor selection. Therefore, it compares the auditor quality of the company from pre-MCCG 2007 (2006) and post-MCCG 2007 (2008).

show abstract

Corporate Governance Structure and Its Relationship with Audit Fee-Evidence from Malaysian Public Listed Companies

Cited by 9 publications

References 42 publications

The effectiveness of payroll system in the public sector to prevent fraud

The effectiveness of payroll system in the public sector to prevent fraud

Corporate Governance and Audit Fees Evidence from Bangladeshi Listed Banks and NBFIs

Corporate governance and auditor quality – Malaysian evidence

Contact Info

Product

Resources

About