The impact of financial safety act and corporate governance on the level of financial disclosure

Taktak

2018

MAJ

Purpose This paper aims to investigate the association between internal audit function (IAF) characteristics and internal control quality. Design/methodology/approach Using data gathered from 59 chief audit executives from Tunisian listed companies, this paper uses a regression model to examine research hypothesis related to the association between IAF characteristics and internal control quality. Findings The findings of the current study reveal that internal control quality is significantly and positively associated with IAF competence, internal audit quality control assurance level, follow-up process and audit committee’s involvement in reviewing the internal audit program and results. Practical implications The findings have significant implications for IAF wishing to enhance their effectiveness, by recognizing the impact of the IAF’s characteristics on internal control quality. The findings of this study also have significant implications for regulatory bodies who are concerned with the internal control quality, managers and audit committees who determine IAF investment, oversight IAF activities and assess internal auditors’ performance. Originality/value This study helps fill a gap in the extant literature where existing empirical evidence of how the IAF characteristics influences the quality of the financial reporting process in emerging markets is scant.

Section: Internal Audit and Internal Control Regulation In Tunisiamentioning

confidence: 99%

The impact of internal audit function characteristics on internal control quality

Taktak

2018

MAJ

“…Market regulators have increasingly recognized the pivotal role of the audit committee in ensuring the quality of financial reporting and auditing process (Ahmadi and Bouri, 2016;Lin et al, 2008;Cohen et al, 2008;DeZoort et al, 2002). A growing stream of research has investigated the impact of audit committee composition on financial reporting quality and external audit process (Alzeban, 2020).…”

Section: Introductionmentioning

confidence: 99%

The impact of audit committee financial expertise on de facto use of IFRS: does external auditor’s size matter?

Klibi

2020

Purpose De facto use of International Financial Reporting Standards (IFRS) is a particular form of voluntary compliance with International Accounting Standards (IAS). It is practiced when an enterprise uses a number (and not all) of international standards as a complement to overcome the unachieved nature of local generally accepted accounting principles. The purpose of this paper is to analyze, at first, whether the financial expertise of Tunisian audit committee’s members is associated with de facto use of IFRS. Second, it explores to what extent and in what direction this association evolves when the factor auditor’s size is introduced as a moderator variable. Design/methodology/approach Data spanning a seven-year period (2012–2018) was hand-collected for a sample of 497 firm-year observations. Further, regression analysis was used to test the study’s hypothesis. Findings Findings show that the proportion of financial experts who sit on the audit committee is positively associated with the de facto use of IFRS. Besides, the association between audit committee members’ financial expertise and the voluntary use of IFRS is more pronounced when the company is audited by at least one BIG 4 audit firm. Practical implications The paper’s findings have implications for regulatory bodies and standards setters who are concerned with the functioning of the audit committee, especially when it comes to enhancing the quality of the financial statements. The results also shed light on the role of financial experts on the audit committee and Big 4 auditors to enforce the de facto use of IFRS. Originality/value The findings of this study contain an important message for the drift toward national de jure convergence with IAS.

“…Their findings reveal that the expertise and the frequency of meetings of the AC have a positive impact on AC members' interaction with internal auditors. Ahmadi and Bouri (2016) found no significant association between the appointment of an AC and financial disclosure level of Tunisian companies. Oussii and Boulila Taktak (2018) examine the impact of AC characteristics on audit report timeliness of Tunisian listed firms and find that the proportion of AC members with accounting qualifications is significantly associated with reductions in audit delay.…”

Section: Existing Studies On Audit Committee In the Tunisian Settingmentioning

confidence: 67%

“…2011-06. These key corporate governance reforms are aligned with the Anglo-American model of governance, seeking to reinforce the establishment and the composition of the AC, charged with monitoring the quality of financial reporting (Ahmadi and Bouri, 2016). Nonetheless, the reforms introduced recently do not provide insights into the efficient functioning of ACs.…”

Section: Introductionmentioning

confidence: 99%

Audit committee role: formal rituals or effective oversight process?

Klibi

Ouertani

2019

MAJ

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.