CEO Power, Internal Control Quality, and Audit Committee Effectiveness in Substance Versus in Form

2015 ◽  
Vol 33 (3) ◽  
pp. 1199-1237 ◽  
Author(s):  
Ling Lei Lisic ◽  
Terry L. Neal ◽  
Ivy Xiying Zhang ◽  
Yan Zhang
Keyword(s):  
Internal Control ◽  
Audit Committee ◽  
Ceo Power ◽  
Control Quality

Audit committee activity and internal control quality in Egypt

2016 ◽  
Vol 31 (3) ◽  
pp. 269-289 ◽  
Author(s):  
Hichem Khlif ◽  
Khaled Samaha
Keyword(s):  
Internal Control ◽  
Audit Committee ◽  
Relevant Information ◽  
Policy Implications ◽  
Content Type ◽  
External Auditors ◽  
Audit Market ◽  
Control Quality ◽  
Big 4 ◽  
The Relationship

Purpose – The purpose of this paper is to examine the association between audit committee activity, external auditor’s size and internal control quality (ICQ) in the Egyptian setting. It also explores how external auditor’s size moderates the relationship between audit committee activity and ICQ. Design/methodology/approach – To obtain relevant information about ICQ in Egypt, the authors conducted a survey among external auditors using an internal control checklist. Findings – Results show that audit committee activity has a significant positive effect on ICQ. In addition, Big 4 auditors contribute significantly to the improvement of the ICQ in the Egyptian setting. Finally, the association between audit committee activity and ICQ is more pronounced when an organisation is audited by a Big 4 audit firm. Originality/value – The results this paper demonstrate that Big 4 auditors play a governance role in weak legal environment as exists in Egypt by strengthening the effectiveness of audit committee meetings. The findings also have policy implications for Egyptian standard-setters and other emerging economies characterised by an under-developed and poorly regulated audit market, with respect to the development of internal auditing standards.

scholarly journals The Effect of Audit Committee and Board of Directors Characteristics' on Audit Fees and Internal Control Quality in Iran // El efecto de las características del Comité de Auditoría y de la Junta Directiva sobre los honorarios de auditoría y la calidad del

2019 ◽  
Vol 28 ◽  
pp. 23-42
Author(s):  
Mahdi Salehi ◽  
Noman Rashidi Soorestani
Keyword(s):  
Regression Model ◽  
Board Of Directors ◽  
Internal Control ◽  
Significant Relationship ◽  
Audit Committee ◽  
Stock Exchange ◽  
Audit Fees ◽  
Board Independence ◽  
Panel Regression ◽  
Control Quality

This study investigates the effect of characteristics of board of directors and audit committee strength on audit fees internal control quality. In this study, 84 companies listed on the Tehran Stock Exchange were evaluated from 2014 to 2016. Panel regression model and panel logistic regression model were used for testing hypotheses related to audit fees and the weaknesses of internal control quality, respectively. Results showed that there is no significant relationship between the authority of board of directors and audit committee and the independence board and audit committee expertise and internal control quality weakness and also between the board power and audit fees. There is a significant relationship, however, between the board independence and audit committee authority, expertise, as well as the audit fees. Furthermore, results indicated that there is no significant relationship between board effort and audit fees and internal control quality weakness.

Does Audit Committee Monitoring Matter in the Government Sector? Evidence from Municipal Internal Control Quality

2014 ◽  
Vol 3 (1) ◽  
pp. 58-80 ◽  
Author(s):  
Kevin T. Rich ◽  
Jean X. Zhang
Keyword(s):  
Financial Reporting ◽  
Internal Control ◽  
Audit Committee ◽  
Audit Committees ◽  
Control Problems ◽  
Control Quality ◽  
Self Selection ◽  
Government Sector ◽  
The Government ◽  
Financial Oversight

ABSTRACT We investigate whether the presence of municipal audit committees is associated with internal control quality in the municipal setting. The evidence shows that only 20 percent of municipalities in our sample voluntarily maintained an audit committee during the sample period of 2001 through 2004. Our results highlight that municipalities with audit committees are associated with fewer internal control problems, which in turn suggests these cities should be less likely to experience future significant financial reporting failures. These results persist in specifications that use econometric procedures to address concerns about self-selection. Overall, our findings suggest that audit committee presence plays an important role in municipal financial oversight.

Internal Control Quality and Bank Risk-Taking and Performance

2020 ◽  
Author(s):  
Matthew Baugh ◽  
Matthew Ege ◽  
Christopher G. Yust
Keyword(s):  
Internal Control ◽  
Risk Taking ◽  
Downside Risk ◽  
Internal Controls ◽  
Bank Risk ◽  
Material Weakness ◽  
Control Quality ◽  
Interest Income ◽  
Upside Risk ◽  
And Performance

Using a sample of bank-years from 2005 to 2017, we examine the effect of internal control quality on future risk-taking and performance. We find that banks that disclose a material weakness in internal controls have higher risk-taking and worse performance in the future, including having a higher (lower) likelihood of experiencing large losses (gains). These findings suggest that weak controls increase (reduce) downside (upside) risk-taking or conversely that strong controls increase (reduce) upside (downside) risk-taking. Path analyses suggest that 22.3 to 43.7 percent of the effect of internal control quality on future performance is through risk-taking. Additionally, material weaknesses are negatively associated with total asset, loan, interest income, and non-interest income growth, suggesting that internal control quality affects both core and non-core activities of banks. Overall, results suggest that strong internal controls improve bank risk-taking, in part through asymmetrically reducing downside risk-taking while facilitating upside risk-taking, ultimately improving bank performance.

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