Impact Of Audit Committee Research Articles

The Impact of Audit Committees on the Financial Performance of Commercial Banks in Burundi

The Impact of Audit Committees on the Financial Performance of Commercial Banks in Burundi

Study on Impact of Audit Committee on Organization Financial Performance

Abstract: As of late, the job of review panels inside associations has acquired expanding consideration because of their urgent job in guaranteeing straightforwardness, responsibility, and powerful administration. This study means to investigate and examine the effect of review advisory groups on hierarchical execution, zeroing in on their capabilities, synthesis, and viability.

The impact of audit committees on the adoption of IFRS 15: An applied study on a sample of Iraqi banks

The impact of audit committees on the adoption of IFRS 15: An applied study on a sample of Iraqi banks

The impact of audit committee on financial reporting quality: A case of Vietnam listed public companies

The impact of audit committee on financial reporting quality: A case of Vietnam listed public companies

Audit committees, political connections, and audit quality on tax avoidance

Differences in the results of previous studies regarding the relationship between audit committees, political connections, and audit quality on tax avoidance make this research necessary. This study aims to thoroughly review and identify empirical evidence about the impact of audit committees, political ties, and audit quality on tax avoidance. Tax avoidance is a dependent variable. Audit quality, audit committees, and political connections are independent variables. Political connections were calculated using the number of Board of Commissioners with the formula of calculating the number of Commissioners: The Board of Commissioners was politically connected. The audit committee was calculated using the number of members of the company's audit committee. The audit quality measurement in this study is dummy variables. This study is explanatory research and uses a quantitative methodology. The 36 samples included in this study are mining firms listed between 2017 and 2019 on the Indonesia Stock Exchange. Purposive sampling was used to collect samples, while multiple linear regression was the technical data analysis method used in this study. When selecting how to disclose financial information, the corporation considers the audit committee. Political connections negatively affect tax avoidance. It reveals how political ties to the board of commissioners also affect tax evasion. Audit quality has a detrimental effect on tax evasion as well. The Big Four Public Accounting Firm's (KAP) audit standard ensures accurate financial data.

Which attributes of audit committees are most beneficial for European companies? Literature review and research recommendations

PurposeThis paper aims to review 68 archival studies on the impact of audit committees (ACs) on firms’ consequences [(non)financial reporting, performance and audit quality] in European firms.Design/methodology/approachApplying a stakeholder agency-theoretical framework, the author differentiates between three categories of AC variables: presence; composition; and resources, incentives and diligence.FindingsThe author finds that AC composition, (non)financial reporting and audit quality are dominant in the literature review. Other inputs or outputs are either too low in amount or yielded heterogeneous results, hindering clear tendencies. However, there are indications that financial expertise is positively related to financial reporting and audit quality, in line with agency theory and European regulatory assumptions.Research limitations/implicationsIn the discussion of potential future research, the author emphasizes, among others, the need for the recognition of innovative and sustainable AC variables, inclusion of moderator and especially mediator variables and reaction to endogeneity concerns by advanced regression models.Practical implicationsAs the European Commission currently discusses extended regulations on AC duties and composition, this literature review highlights the huge impact of financial expertise on financial reporting and audit quality. In view of the increased monitoring duties of sustainability reporting, both business practices and regulatory bodies should increase the sustainability expertise of ACs.Originality/valueThis analysis makes useful contributions to prior research by focusing on attributes of AC and their impact on firms’ outputs in the European capital market, based on a differentiation between mandatory one-tier/two-tier systems and the choice model. The findings support the promotion of European evidence-based regulations, such as the Corporate Sustainability Reporting Directive and the Corporate Sustainability Due Diligence Directive.

The Impact of Audit Committee on the reliability of the financial statements under the corporate governance

The Impact of Audit Committee on the reliability of the financial statements under the corporate governance

The impact of audit committee on financial reporting quality

The above research papers confirm the fact the accuracy and credibility of financial reports issued by listed firms are crucial for an efficient and viable stock market. Unfortunately, accounting fraud and other financial market misconduct are prevalent in the global market, and have seriously damaged interests of shareholders around the world. To prevent this bad phenomenon and to improve investor confidence, governments around the world have implemented a series of reforms to strengthen internal and external corporate governance mechanisms. Many of these regulatory changes have focused on the composition of an audit committee, a board sub-committee in charge of overseeing a firm’s financial reporting process, internal control structure, internal audit functions, and external audit services. Thus, the aim of this paper is to show the relationship between the impacts of audit committee on financial reporting quality. To achieve the objectives of the paper, the researcher relied on reviewing 15 related studies that were published in different journals and by different authors for time periods (2016 - 2020).

The impact of audit committees on improving the quality of accounting profits and raising credit efficiency) A field study on a sample of Iraqi banks listed in the Iraq Stock Exchange

The study aimed to clarify the relationship between the functions of the audit committee and its role in improving the quality of accounting profits, and raising credit efficiency. And to achieve the objectives of the study, the SPSS program was used to analyze the questionnaire, and the study was applied to accountants and internal auditors in Iraqi banks in Iraq, where the sample size was 130 individuals. In the future, it reduces financial risks and increases credit efficiency. The strength of the audit committee and the control system within the economic unit enables the repayment of loans on time and thus leads to raising credit efficiency. The evaluation of all procedures in the bank leads to improving the quality of profits and raising credit efficiency. Effectively reduces profit fluctuation and ensures its continuity, and the work of audit committees within banks according to a specific framework improves the quality of accounting profits. The study made several recommendations, including: The independence of audit committees in banks has a positive impact on improving the quality of profits and raising credit efficiency. Rehabilitation and training of members of audit committees to increase their skills and enable them to do their work better, and increase interest in the role played by audit committees in Iraqi banks.

Impact of audit committee attributes on financial reporting quality and timeliness: an empirical study

Impact of audit committee attributes on financial reporting quality and timeliness: an empirical study

The Impact of Audit Committee on Earnings Management: The Relevance of Malaysian Code of Corporate Governance 2007

The Impact of Audit Committee on Earnings Management: The Relevance of Malaysian Code of Corporate Governance 2007

The Impact of Audit Committees on US Nonprofit Organizations’ Governance

All public companies in the United States are required by the securities and exchange commission (SEC) to have an audit committee. Such enforcement can be attributed to high-profile corporate failures and their connections to nonexistence, ineffective or weak audit committees and governance. Despite the efforts to establish a similar argument and enforcement structure for the nonprofit sector, the internal revenue service (IRS) has not pursued legislation, and no empirical evidence has been established to support any public policy changes. This paper contributes to the literature in this field by being the first study to examine 124,980 nonprofit organizations during the period of 2010 to 2015 to test the association between governance in nonprofit organizations and audit committees. We included fifteen measures from these organizations’ IRS Form 990 filings to formulate the study variables. We found significant evidence that the existence of audit committees improves the governance scores of nonprofit organizations. Our study findings have significant implications for nonprofit executives, policy makers and any other interested parties; these findings act as preliminary evidence to support more proactive policies regarding mandatory audit committees for nonprofit organizations

Impact of Audit Committees on the Financial Performance Evidence from Jordan

This study examines the effects of the correlation between corporate governance mechanisms (audit committees) on the financial performance in the Jordanian companies, the sample comprises of 115 companies, 690 observations, listed in ASE for the period from (2010-2015), thus our goal is the correlation between the audit committees and financial performance to financial data analysis quality test and effect on the earnings. The results of this research expose a strong relationship both the audit committees and performance, and the results of this study have significant inclusion that supports encouraging the enforcement of the principles of governance and controlling the behavior of these committees, the reliability of statements, financial information, and reports issued by companies can be enhanced. The current study bridges the previous literature gap by providing empirical evidence on the quality and efficiency of audit committees in Jordan as an emerging economy and its impact on financial performance.

The Impact of Audit Committees on US Nonprofit Organizations’ Governance

All public companies in the United States are required by the securities and exchange commission (SEC) to have an audit committee. Such enforcement can be attributed to high-profile corporate failures and their connections to nonexistence, ineffective or weak audit committees and governance. Despite the efforts to establish a similar argument and enforcement structure for the nonprofit sector, the internal revenue service (IRS) has not pursued legislation, and no empirical evidence has been established to support any public policy changes. This paper contributes to the literature in this field by being the first study to examine 124,980 nonprofit organizations during the period of 2010 to 2015 to test the association between governance in nonprofit organizations and audit committees. We included fifteen measures from these organizations’ IRS Form 990 filings to formulate the study variables. We found significant evidence that the existence of audit committees improves the governance scores of nonprofit organizations. Our study findings have significant implications for nonprofit executives, policy makers and any other interested parties; these findings act as preliminary evidence to support more proactive policies regarding mandatory audit committees for nonprofit organizations.

The impact of audit committee on real earnings management: Evidence from Netherlands

This paper aims to examine the effect of the characteristics of an audit committee on real earnings management in the Dutch context. Our sample is composed of 80 non-financial companies listed on the Amsterdam Stock Exchange during the period between 2010 and 2017. Four proxies are used to measure audit committee characteristics, namely, audit committee independence, financial expertise, gender diversity, and audit committee meetings. To test our hypotheses, we use a regression model to identify the influence of a set of audit committee characteristics on real earnings management after controlling for firm audit committee size, leverage, size, loss, growth and board size. Our analyses provide evidence that audit committee independence and gender diversity constrain real earnings management. Our findings also suggest that audit committee financial expertise reduces to some extent the likelihood of engaging in real earnings management. To the best of our knowledge, the Dutch context is not yet explored especially following the issue of the long-awaited new Dutch Corporate Governance Code in 2016 which has been updated for a long period in 2008. Therefore, corporate governance is a relevant topic in the Netherlands. This study contributes geographically to the Audit Committee and earnings management literature that examines another possible method, specifically, real earnings management.

The impact of audit committee, CEO, and external auditor quality on the quality of financial reporting

PurposeThis paper aims to explore the influence of corporate governance (CG) components on the quality of financial reporting (QFR). The components investigated are the Audit Committee (AC), CEO and external auditor quality. The study also examines whether the AC mediates the effects of other components of CG on the QFR.Design/methodology/approachData were collected from 386 listed companies in four European countries for the period 2015-2017. The QFR was measured using two proxies, discretionary accruals and accruals quality. Firstly, an OLS regression model was estimated to measure the effects of the three variables investigated on the QFR, and to determine which of these variables had the greatest influence in this relationship. Secondly, several mediation analyses were performed to test whether the AC mediates the effects of the CEO, and external auditor quality on the QFR.FindingsThe findings reveal that each of these three components has a positive impact on the QFR, but that the AC has the greatest effect in this respect. The findings also indicate that the AC mediates the effect of the CEO on the QFR. Alternative tests and different measures for the variables confirm the robustness of the results obtained.Practical implicationsSignificant implications are provided for regulators and policy-makers. Findings of the present study help regulators and policymakers to pay more attention to the enforcement of AC policies, and the appointment of AC members. Further, the results are helpful to policy-makers concerned with improving CG, and who need evidence of the role of high QFR in this matter.Originality/valueThe findings provide insights into the effect of CG on QFR, and into the most influential component in this relationship; hence, they make a valuable contribution to the literature. They also contribute to the topic of mediations analysis in CG research, providing additional evidence that the AC mediates the effects of the CEO, and external auditor quality on the QFR.

The Impact of Audit Committee on Financial Performance of Insurance Firms in Nigeria

This study examined the effect of audit committee size on the financial performance of insurance companies in Nigeria between the year 2004 and 2015. The study used secondary data obtained from the annual report, National Insurance Commission Facts Books and Nigeria Stock Exchange Facts Books of fifteen selected insurance companies listed on the Nigeria stock exchange. The collected data were analyzed using descriptive statistics and regression analysis. The result revealed a significant negative correlation between audit committee and financial performance. The study recommended that the regulatory authorities focus more on other appropriate measure like competence (financial expert in committee) and independence of the committee that will ensure check and balance framework in the audit exercise and hence positive performance. Keywords : Audit Committee, Financial Performance, Insurance companies, Nigeria DOI : 10.7176/RJFA/10-14-02 Publication date :July 31 st 2019

The Impact of Audit Committees on the Performance of Business Entities

The Impact of Audit Committees on the Performance of Business Entities

The Impact of Audit Committee and Internal Audit towards Financial Statement Quality: External Audit and Corporate Governance as Intervening Variables

A financial statement is a crucial matter since its quality is declining. This research developed and tested a theoretical model which identified factors directly or indirectly contributing to the financial statement quality, namely audit committee and internal audit; meanwhile, external audit and corporate governance were considered as antecedent factors having impact on the report. The objective of the research is to gain insight on such factors. The objective of the research is to gain insights on factors that affect such reports. The findings showed consistent evidence supporting the theoretical model. They also showed how AC and IA simultaneously and partially impacted the quality of financial statements (QFS). AC and IA directly or indirectly affect the quality of the financial statement. They also have indirect effects through CG and EA in enhancing the quality to 77%.

Impact of Audit Committee on Organizational Performance of Listed Hotels and Travels in Sri Lanka

The audit committee is one of the key elements in the corporate governance structure that helps to control and monitor management in the organization. The aim of this study is to investigate the impact of audit committee on organizational performance of listed hotels and travels in Sri Lanka. The sample consists of 15 listed hotels and travels in Sri Lanka. In this study, data was collected from secondary sources and hypotheses are examined by using Pearson’s correlation and multiple regression analysis (Eviews). The results reveal that audit committee attributes such as AC independence, AC experts and AC meetings have a significant impact on organizational performance of listed hotels and travels in Sri Lanka. Further audit committee size is not found to have a significant impact on the organizational performance. The findings could be useful to regulators in other jurisdiction who are looking at ways to enhance the effectiveness of AC, overall firm governance and enhance the organizational performance.