Audit Committee Authority and Effectiveness: The Perceptions of Malaysian Senior Managers

33 Pages Posted: 16 Aug 2006

See all articles by Siti Shaharatulfazzah Mohd Saad

Siti Shaharatulfazzah Mohd Saad

Independent

Jonathan Gerard Evans

University of Glamorgan - Business

Zulkarnain Muhamad Sori

INCEIF, The Global University of Islamic Finance

Mohamad Ali Abdul Hamid

Universiti Putra Malaysia

Date Written: August 2006

Abstract

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.

Keywords: Audit committee, Authority, Effectiveness, Perceptions, Malaysia, Survey

JEL Classification: G30, M41, M49, M47, G34

Suggested Citation

Mohd Saad, Siti Shaharatulfazzah and Evans, Jonathan Gerard and Muhamad Sori, Zulkarnain and Abdul Hamid, Mohamad Ali, Audit Committee Authority and Effectiveness: The Perceptions of Malaysian Senior Managers (August 2006). Available at SSRN: https://ssrn.com/abstract=924130 or http://dx.doi.org/10.2139/ssrn.924130

Jonathan Gerard Evans

University of Glamorgan - Business ( email )

Glamorgan University
Pontypridd
Wales
United Kingdom
+44 0 1443 482080 (Phone)
01443 480558 (Fax)

HOME PAGE: http://bus.glam.ac.uk/staff/

Zulkarnain Muhamad Sori

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/

Mohamad Ali Abdul Hamid

Universiti Putra Malaysia ( email )

Selangor Darul Ehsan
Serdang, Selangor 43400
Malaysia

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