Compliance of Audit Committee Requirements: A Review of the Practices of Companies Listed on the Klse
27 Pages Posted: 30 Nov 2005
Date Written: January 1, 2005
In support of the newly implement disclosure based corporate environment and good corporate governance, the Malaysian government has made it compulsory for all listed firms to form audit committees. With the view of enhancing the capability of audit committees to better achieve their objectives and promote better corporate governance, transparency, efficiency in capital market activities, and to strengthen investor protection and confidence, the KLSE Listing Requirements were recently revised and set a foundation for a sound accounting and financial reporting system, and preparation of high quality financial statements for stakeholders. Therefore, this paper discusses the characteristics of the audit committees of main and second board, and MESDAQ companies, with respect to compliance with the recent amended listing requirements. The discussion focuses on the aspects of composition, independence, chairperson and reporting of the committee in company's annual report.
Keywords: Audit committee, compliance, corporate governance, listing requirements and financial reporting.
JEL Classification: M40
Suggested Citation: Suggested Citation