The Impact of Selected Corporate Governance Programmes to Auditor Independence: Some Evidence from Malaysia

28 Pages Posted: 20 Dec 2005

See all articles by Zulkarnain Muhamad Sori

Zulkarnain Muhamad Sori

INCEIF, The Global University of Islamic Finance

Yusuf Karbhari

Cardiff Business School

Date Written: December 2005

Abstract

Corporate governance is essential for establishing an attractive investment climate characterised by competitive companies and an efficient capital market. This paper examines the impact of four corporate governance programmes to perceived auditor independence from the perspective of Malaysian auditors, loan officers and senior managers of public listed companies. Questionnaire and interview surveys were employed to seek the respondent's perceptions on these issues. It is found that auditor independence would be safeguarded on the following issues: the compliance with the Financial Reporting Standards (FRS) of the Malaysian Accounting Standard Board (MASB) was legally mandated, the establishment of the Malaysian Institute of Corporate Governance (MICG), the establishment of the Minority Shareholders Watchdog Group (MSWG) and the implementation of mandatory director accreditation training programme (MDATP).

Keywords: Corporate governance, MASB, MSWG, MICG, Training Programme

JEL Classification: M41, M49, G34, G38

Suggested Citation

Muhamad Sori, Zulkarnain and Karbhari, Yusuf, The Impact of Selected Corporate Governance Programmes to Auditor Independence: Some Evidence from Malaysia (December 2005). Available at SSRN: https://ssrn.com/abstract=871139 or http://dx.doi.org/10.2139/ssrn.871139

Zulkarnain Muhamad Sori (Contact Author)

INCEIF, The Global University of Islamic Finance ( email )

Lorong Universiti A
Kuala Lumpur, Kuala Lumpur 59100
Malaysia
+60376514173 (Phone)
8 (Fax)

HOME PAGE: http://www.inceif.org/

Yusuf Karbhari

Cardiff Business School ( email )

Aberconway Building
Colum Drive
Cardiff, CF1 3EU
United Kingdom
+ 44 0 29 2087 6057 (Phone)
+ 44 0 29 2087 4419 (Fax)

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