Senior Managers' Perceptions on Audit Committee Composition and Effectiveness: Some Evidence from Malaysia

26 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

Date Written: August 2006

Abstract

The aim of this study is to investigate the perceptions of corporate management on the relationship of audit committee composition and effectiveness. Issues examined include status of audit committee members, member's financial literacy, status of chairman of audit committee, and good characteristics of an audit committee. It is found that audit committee effectiveness would be enhanced if the committee comprised a majority of non-executive directors. The respondents also believed that audit committee effectiveness would be enhanced if the majority of audit committee members financially literate, non-executive director assume the chairmanship of the committee. It is also found that a good characteristic of an audit committee is member that has good knowledge and understanding of the company's business activities.

Keywords: Audit Committee, Composition, Effectiveness, Managers, Perception

JEL Classification: G34, M49, M47

Suggested Citation

Mohd Saad, Siti Shaharatulfazzah and Evans, Jonathan Gerard and Muhamad Sori, Zulkarnain, Senior Managers' Perceptions on Audit Committee Composition and Effectiveness: Some Evidence from Malaysia (August 2006). Available at SSRN: https://ssrn.com/abstract=924140 or http://dx.doi.org/10.2139/ssrn.924140

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/

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