scholarly journals Non-executive directors and audit committee: a study on their authority and effectiveness

2008 ◽  
Vol 5 (2) ◽  
pp. 296-305 ◽  
Author(s):  
Zulkarnain Muhamad Muhamad Sori ◽  
Mohamad Ali Abdul Hamid ◽  
Siti Shaharatulfazzah Mohd Saad ◽  
Jonathan Gerard Evans
Keyword(s):  
Questionnaire Survey ◽  
Audit Committee ◽  
Annual Report ◽  
Audit Fees ◽  
Listed Companies ◽  
Financial Statement ◽  
Committee Report ◽  
Executive Directors ◽  
Senior Managers ◽  
Survey Technique

This study aimed to investigate the perceptions of senior managers of Malaysian publicly listed companies on issues relating to audit committee authority and effectiveness. Questionnaire survey technique was employed to seek the respondents perceptions on seven issues, namely audit committee appoints the auditor, audit committee determines and reviews audit fees, audit committee determines and reviews the auditor’s scope and duties, and audit committee’s reports, meetings, charter and roles. The majority of respondents agreed that auditor would be more effective and independent if audit committee assumed the responsibility to appoint the auditor, determine and review the audit fees, and determine and review the external auditor’s scope and duties. It is also found that disclosure of audit committee report, quarterly meeting and disclosure charter in annual report would enhance the perceptions of users of financial statement concerning the effectiveness of the committee.

scholarly journals Audit committee: Some evidence from Malaysia

2006 ◽  
Vol 2 (3) ◽  
pp. 25-35
Author(s):  
Zulkarnain Muhamad Sori ◽  
Mohamad Ali Abdul Hamid ◽  
Siti Shaharatulfazzah Mohd Saad ◽  
Jonathan Gerard Evans ◽  
Annuar Md Nassir
Keyword(s):  
Questionnaire Survey ◽  
Audit Committee ◽  
Audit Fees ◽  
Listed Companies ◽  
Financial Statement ◽  
Committee Report ◽  
Senior Managers ◽  
Survey Technique

This study aimed to investigate the perceptions of senior managers of Malaysian publicly listed companies on issues relating to audit committee authority and effectiveness. Questionnaire survey technique was employed to seek the respondents perceptions on five issues, namely audit committee appoints the auditor, audit committee determines and reviews audit fees, audit committee determines and reviews the auditor’s scope and duties, and audit committee’s reports and meetings. The majority of respondents agreed that auditor would be more effective and independent if audit committee assumed the responsibility to appoint the auditor, determine and review the audit fees, and determine and review the external auditor’s scope and duties. It is also found that disclosure of audit committee report and quarterly meeting would enhance the perceptions of users of financial statement concerning the effectiveness of the committee.

An investigation of the control role and effectiveness of independent non-executive directors in Malaysian public listed companies

2015 ◽  
Vol 30 (6/7) ◽  
pp. 582-609 ◽  
Author(s):  
Hairul Azlan Annuar ◽  
Hafiz Majdi Abdul Rashid
Keyword(s):  
Qualitative Research ◽  
Research Design ◽  
Audit Committee ◽  
Listed Companies ◽  
Sustainable Growth ◽  
Executive Directors ◽  
Content Type ◽  
Qualitative Research Design ◽  
Company Directors

Purpose – The purpose of this study is to ascertain the control role of independent non-executive directors (INEDs) in Malaysian public listed companies (PLCs), as prescribed in the Malaysian Code on Corporate Governance (MCCG).The MCCG (2000) requires substantive involvement of INEDs on the audit, nomination and remuneration board sub-committees. The study also examines the effectiveness of INEDs in discharging their monitoring roles in these sub-committees. Design/methodology/approach – A qualitative research design consisting of a series of interviews with board members of Malaysian-owned PLCs on the board of Bursa Malaysia was used. Findings – Interviews with 27 company directors reveal that, due to their independence, INEDs are crucial in safeguarding the interests of smaller investors if situations arise in which shareholders’ interests may be threatened. The interviews also disclose that the audit committee possesses the most authority among the sub-committees, as it derives its power not only from the Listing Requirements but also from statute, as well as being involved in areas of the company not traditionally associated with the committee. The study also reveals the differences in opinion between executive directors and INEDs with regard to the extent of INEDs’ effectiveness. Research limitations/implications – This research utilises interviews. Generalisation may be an issue when interviews are used as the method of inquiry. In addition, the sample is not random, as access to many directors is dependent on recommendations. In addition, the respondents have been consciously selected to cover various board positions, including independent and non-independent directors. Practical implications – The findings from this research suggest that INEDs are able to discharge their responsibilities in overseeing the conduct of executives and protecting the interests of investors. In addition, the interviews disclose that the effectiveness of INEDs depends on how non-executive directors view INEDs being on the board. Rather than focusing solely on their control role, INEDS are expected to have a more proactive and progressive role in ensuring sustainable growth and the expansion of the business entity. Originality/value – There are limited studies using qualitative research design in investigating the effectiveness of INEDs in the control role of the board in developing countries. Prior studies were predominantly based upon the experience of Western economies.

4. Financial reports of listed companies

2014 ◽  
Author(s):  
Christopher Nobes
Keyword(s):  
Annual Report ◽  
Balance Sheet ◽  
Listed Companies ◽  
Financial Statement ◽  
Financial Assets ◽  
Financial Reports ◽  
Income Statement ◽  
Tangible Assets ◽  
The Difference ◽  
Accounting Ratios

‘Financial reports of listed companies’ considers the components of an annual report and the types of financial statement that companies generally provide: balance sheet, income statement, statement of changes in equity, and cash flow statement. It addresses the following questions: what are assets and how are they measured? What is the difference between depreciation and impairment? Why are various expected expenses and losses not accounted for as liabilities? How can an investor decide which company to lend to or buy shares in? How could managers use accounting to mislead investors? Tangible assets, intangible assets, and financial assets are defined along with liabilities and accounting ratios.

scholarly journals Gender Diversity of Audit Committees and Audit Fees: Evidence from Chinese Listed Companies

2015 ◽  
Vol 7 (2) ◽  
pp. 239 ◽  
Author(s):  
Rui Xiang ◽  
Meng Qin ◽  
Craig A Peterson
Keyword(s):  
Audit Committee ◽  
Gender Diversity ◽  
Audit Fees ◽  
Listed Companies ◽  
Audit Committees ◽  
Men And Women ◽  
Public Company ◽  
Chinese Listed Companies ◽  
State Enterprises ◽  
The Relationship

<p>This paper investigates whether women, who serve on the audit committee of the board, can have a significant impact in reducing audit fees paid by China's A-share listed companies during the period 2004 to 2007. We show that audit committees composed of both men and women pay significantly smaller audit fees. The relationship is significantly greater in non-state enterprises than that exhibited by state-owned enterprises and significantly greater in companies deemed to have weak management vis-à-vis strong management. Further analysis shows that the composition of the committee is irrelevant when management is strong, regardless of whether it provides guidance for a state-owned enterprise or a strictly public company. When management is deemed weak, however, gender diversity is associated with smaller fees.</p>

scholarly journals The impact of corporate governance elements on environmental reporting : the case of public listed companies in Malaysia

2014 ◽  
Vol 11 (1) ◽  
pp. 75
Author(s):  
Mohd Rashdan Sallehuddin
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Listed Companies ◽  
Annual Reports ◽  
Executive Directors ◽  
Government Ownership ◽  
Environmental Reporting ◽  
Female Director ◽  
The Impact ◽  
The Relationship

The paper aims to examine the impact of the relationship between the elements of corporate governance and environmental reporting of public listed companies in Malaysia. This study adopts a cross sectional analysis by examining the 2010 annual reports of 254 public listed companies and using content analysis as the method to measure the extent of environmental reporting and compared with various corporate governance measures. Regression analysis was used to examine the relationship between Corporate Environmental Reporting (CER) and independent variables of Corporate Governance (CG) namely independent non-executive directors, audit committee composition, female director, duality, managerial and government ownership. Analysis found a significant relationship between the extents of environmental reporting with government ownership. In contrast, the extent of CER is insignificant with relation of independent non-executive directors, audit committee composition, female director, duality and managerial ownership. The results could be useful to provide evidence to regulatory bodies to look further and to identify the elements of corporate governance that will enhance the CER.

scholarly journals The Usefulness Of Audit Committee Reports: Assessments And Perceptions

2011 ◽  
Vol 7 (3) ◽  
pp. 36 ◽  
Author(s):  
Frank R. Urbancic
Keyword(s):  
Financial Reporting ◽  
Audit Committee ◽  
Annual Report ◽  
Committee Report

The Treadway Commission has strongly recommended that publicly regulated corporations be required to publish a report by the chairman of the audit committee. In contrast, the SEC does not believe such a report would provide any additional useful information. This study considers the extent to which publication of an audit committee report impacts certain assessments and perceptions related to the financial reporting processing. Overall, the results tend to confirm the SECs belief that inclusion of an audit committee report in the annual report is not likely to provide significant useful information.

scholarly journals PENGARUH REMUNERASI DEWAN DIREKSI, LEVERAGE DAN EFEKTIVITAS KOMITE AUDIT TERHADAP KUALITAS LABA DENGAN UKURAN PERUSAHAAN SEBAGAI VARIABEL MODERASI

2019 ◽  
Vol 4 (2) ◽  
pp. 227
Author(s):  
Christin Agustina ◽  
Susi Dwi Mulyani
Keyword(s):  
Regression Analysis ◽  
Audit Committee ◽  
Sampling Method ◽  
Annual Report ◽  
Earnings Quality ◽  
Sampling Technique ◽  
Positive Influence ◽  
Analytical Tool ◽  
Financial Statement ◽  
Independent Variables

<p><em>The purpose of this research is to determine the influence of</em><em> director remuneration, leverage, and audit committee effectiveness on earnings quality with size of company as moderating variable. The independent variables in this model are director remuneration, leverage, audit committee effectiveness, and size of company. The dependent variable is earnings quality. Dependent variable measured with Quality Earnings Ratio</em> (<em>QER</em>).<em></em></p><p>            <em>Data</em><em> for this research were obtained by the company's financial statement and annual report and the Indonesia Stock Exchange’s website (BEI). Sample that used in this research are 39 companies listed on the BEI for the period 2013-2017. The sampling technique used was purposive sampling method. This research uses moderating multiple regression analysis. An analytical tool that used to analyze the hypothesis is SPSS 21.</em></p><p><em>The result of this research shows that director remuneration has positive influence on earnings quality. Leverage has positive influence on earnings quality. Audit committee effectiveness has positive influence on earnings quality. The size of company has no influence on earnings quality. The size of company is proven not to strengthen the positive influence of director remuneration, leverage, and audit committee effectiveness on earnings quality.</em></p><p><em> </em></p>

scholarly journals EKSPLORASI ELEMEN INTEGRATED REPORTING DALAM ANNUAL REPORTS PERUSAHAAN DI INDONESIA

2017 ◽  
Vol 21 (3) ◽  
pp. 411
Author(s):  
Anis Chariri ◽  
Indira Januarti
Keyword(s):  
Audit Committee ◽  
Annual Report ◽  
Listed Companies ◽  
Research Data ◽  
Audit Committees ◽  
Annual Reports ◽  
Stock Exchanges ◽  
Integrated Reporting

This study aims to identify the patterns and scope of integrated reporting and to examine the effect of audit committee characteristics (expertise and meeting) on elements of integrated reporting disclosed in the annual report of companies listed on the Indonesia Stock Exchanges (IDX). This study used 170 annual reports of companies  listed on the IDX as research data (not all companies have the required data). Research data were then analyzed using STATA / MP14 Software. The findings showed that the IDX-listed companies have presented annual reports in accordance with the elements of integated reporting although the scope of presentation was relatively low amounting of  51% (33 of 64 indicators). Furthermore, this study revealed that the audit committees’ expertise (in accounting/ finance) and the frequency of audit committee meetings positively and significantly influenced the scope of the integrated reporting presented in the annual report of the companies.

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