scholarly journals Corporate Governance and Performance of Audit Committee and Internal Audit Functions in an Emerging Economy’s Public Sector

2020 ◽  
Vol 13 (1) ◽  
pp. 85-98
Author(s):  
Shewangu Dzomira
Keyword(s):  
Corporate Governance ◽  
Public Sector ◽  
Audit Committee ◽  
Qualitative Content Analysis ◽  
Internal Audit ◽  
Audit Committees ◽  
The Public ◽  
Effective Performance ◽  
And Performance ◽  
Management Audit

This article seeks to examine corporate governance and the performance of audit committee and internal audit functions in an emerging economy’s public sector. These two functions form a part of imperative corporate governance aspects, and their effective performance ensures better service delivery by public sector agencies. The study is premised on stakeholder theory, which has turned out to be the central point of public sector discourses. The study is based on qualitative content analysis, which aspires to present information about corporate governance and effectiveness of audit committees and internal audit units in South Africa’s public sector. The findings suggest that there is good corporate governance in terms of the existence of audit committees and internal audit functions in the public sector. However, the results suggest that the audit committees and internal audit units in South Africa’s public sector are not effective. Absence of advice, implementation of recommendations and inadequacy of resources have undermined the performance of audit committees and internal audit units in South Africa’s public sector. The leadership and other assurance bringers ought to consider the findings elevated by the audit committees and internal audit and execute their commendation. Their findings should be urbanised into action plans that are implemented by management. Audit committees must improve their oversight on internal audit functions so that both units would effectively perform. The subsistence of successful audit committee and internal audit components in the public sector certifies proficient and effectual exploitation of resources for the gain of all stakeholders.

AUDIT COMMITTEE’S ROLE IN ENHANCING ACCOUNTABILITY OF THE ALBANIAN, PUBLIC SECTOR

2013 ◽  
Vol 8 (4) ◽  
Author(s):  
Holtjana Bello
Keyword(s):  
Corporate Governance ◽  
Public Sector ◽  
Financial Reporting ◽  
Central Government ◽  
Good Governance ◽  
Internal Audit ◽  
Audit Committees ◽  
Main Question ◽  
Internal Auditors ◽  
The Public

The main question around which this paper is based is whether the public sector in Albania needs to establish the Audit Committees as a demand for enhanced quality of services and accountability over the use of public funds is increasing. This paper analyzes the role of public sector Audit Committees in common law practices established to advise management on the adequacy of structures and processes that ensure the integrity of the accounting, auditing, risk management internal controls, and financial reporting. This paper founds out that Audit Committees are not best practices established in every country considering the fact that this practice is appropriate to the private sector corporate governance. However, it reveals that lack of such committees put into question the achievement of good governance objectives. Therefore, this document recommends the establishment of the Audit Committees across the public sector as a practice strongly recommended in the central government bodies within United Kingdom. Such Committees will advise the head of public organizations on risk exposure, corporate governance and control issues, and will enhance and improve the professionalism of internal auditors who still in Albania are adopting and relying on a traditional financial internal audit approach.

Fraudulent Financial Reporting: Consideration of Industry Traits and Corporate Governance Mechanisms

2000 ◽  
Vol 14 (4) ◽  
pp. 441-454 ◽  
Author(s):  
Mark S. Beasley ◽  
Joseph V. Carcello ◽  
Dana R. Hermanson ◽  
Paul D. Lapides
Keyword(s):  
Health Care ◽  
Corporate Governance ◽  
Financial Reporting ◽  
Financial Services ◽  
Audit Committee ◽  
Internal Audit ◽  
Financial Statement ◽  
Audit Committees ◽  
Financial Statement Fraud ◽  
Governance Mechanisms

This paper provides insight into financial statement fraud instances investigated during the late 1980s through the 1990s within three volatile industries—technology, health care, and financial services—and highlights important corporate governance differences between fraud companies and no-fraud benchmarks on an industry-by-industry basis. The fraud techniques used vary substantially across industries, with revenue frauds most common in technology companies and asset frauds and misappropriations most common in financial-services firms. For each of these three industries, the sample fraud companies have very weak governance mechanisms relative to no-fraud industry benchmarks. Consistent with prior research, the fraud companies in the technology and financial-services industries have fewer audit committees, while fraud companies in all three industries have less independent audit committees and less independent boards. In addition, this study provides initial evidence that the fraud companies in the technology and health-care industries have fewer audit committee meetings, and fraud companies in all three industries have less internal audit support. This study of more current financial statement fraud instances contributes by updating our understanding of fraud techniques and risk factors in three key industries. Auditors should consider the industry context as they evaluate the risk of financial fraud, and they should compare clients' governance mechanisms to relevant no-fraud industry benchmarks.

scholarly journals Corporate governance characteristics of firms reporting internal control deficiencies

2011 ◽  
Vol 8 (2) ◽  
pp. 363-390
Author(s):  
Kathleen Rupley
Keyword(s):  
Corporate Governance ◽  
Internal Control ◽  
Audit Committee ◽  
Internal Audit ◽  
High Growth ◽  
Audit Committees ◽  
Market Reactions ◽  
Sarbanes Oxley ◽  
Internal Control Deficiencies ◽  
Nominating Committees

From a sample of firms reporting internal control deficiencies (ICD), I compare corporate governance structures to industry, exchange, and size – matched firms. I examine market reactions to reports of ICDs in 8-K filings. Additionally, I examine shifts in corporate governance characteristics since the Sarbanes-Oxley Act of 2002 (SOX). Results indicate that weaker boards, larger audit committees, less independent nominating committees, and high growth companies are associated with ICDs. Market reaction is negative to ICD disclosures when they are associated with controls over revenue. Firms have made changes post-SOX including reduced non-audit services, more frequent audit committee meetings, formation of nominating and governance committees, creation of internal audit functions, and implementation of corporate governance policies.

scholarly journals The concept and the appearance of internal audit committees

2018 ◽  
Vol 27 (2018) ◽  
pp. 111-114
Author(s):  
Cristian Dragan
Keyword(s):  
Corporate Governance ◽  
Internal Control ◽  
Boards Of Directors ◽  
Audit Committee ◽  
Internal Audit ◽  
Audit Committees ◽  
External Audit ◽  
General Management ◽  
Proper Functioning

The Audit Committee is a concept of Corporate Governance, whose main concerns are focused on organizing and ensuring the proper functioning of internal control, internal audit, and its relationship with external audit. Audit committees have emerged from the need to send recommendations to the general management or board, to understand them and provide needed assistance for their implementation. For these reasons, the boards of directors thoroughly oversee the qualifications of committee members, their autonomy towards managers, the information they receive from auditors, and what they report.

scholarly journals Enchancing Public Accountability and Performance in Nigeria: Periscoping the Impediments and Exploring Imperative Measures

2014 ◽  
Vol 2 (2) ◽  
pp. 102 ◽  
Author(s):  
David K. Adejuwon
Keyword(s):  
Public Sector ◽  
Good Governance ◽  
Poor Performance ◽  
Public Accountability ◽  
Public Sector Management ◽  
The Public ◽  
Effective Performance ◽  
Remedial Actions ◽  
And Performance ◽  
The Military

Over the past decades, accountability and performance have been central in public sector management. Accountability is important for effective performance in the public sector because both elected and non-elected officials need to show the public that they are performing their responsibilities in the best possible way and using the resources provided them effectively and efficiently. This article examines the impediments to public accountability and performance in Nigeria, and recommends remedial actions for effective public accountability and performance in Nigerian public sector management. The article adopts qualitative method in gathering data from various sources. It traced the absence of accountability in public sector management in Nigeria to the incursion of the military into the Nigerian public administration. It shows with relevant examples how the cultureof non-accountability and poor performance has eaten deep into the fabric of the society. It therefore proposes some measures to address the malaise of public accountability and performance in Nigeria. The article contends that unless good governance is in place with public accountability carefully observed, effective public sector performance cannot be realized.

scholarly journals An exploration of the role of records management in corporate governance in South Africa

2013 ◽  
Vol 15 (2) ◽  
Author(s):  
Mpho Ngoepe ◽  
Patrick Ngulube
Keyword(s):  
South Africa ◽  
Corporate Governance ◽  
Audit Committee ◽  
Corporate Citizenship ◽  
Internal Audit ◽  
Audit Committees ◽  
Records Management ◽  
Good Corporate Governance ◽  
Auditor General

Background: Corporate governance maybe approached through several functions such as auditing, an internal audit committee, information management, compliance, corporate citizenship and risk management. However, most organisations, including governmental bodies, regularly exclude records management from the criteria for a good corporate-governance infrastructure. Proper records management could be the backbone of establishing good corporate governance.Objectives: Utilising the King report III on corporate governance as a framework, this quantitative study explores the role of records management in corporate governance in governmental bodies of South Africa.Method: Report data were collected through questionnaires directed to records managers and auditors in governmental bodies, as well as interviews with purposively selected auditors from the Auditor-General of South Africa. Data were analysed using various analytical tools and through written descriptions, numerical summarisations and tables.Results: The study revealed that records management is not regarded as an essential component for corporate governance. Records management is only discussed as a footnote; as a result it is a forgotten function with no consequences in government administration in South Africa. The study further revealed that most governmental bodies have established internal audit units and audit committees. However, records-management professionals were excluded from such committees.Conclusion: The study concludes by arguing that if records management is removed as a footnote of the public-sector operations and placed in the centre of operational concern, it will undoubtedly make a meaningful contribution to good corporate governance.

scholarly journals A mixed methodology to view internal audits internal control functioning

2017 ◽  
Vol 14 (2) ◽  
pp. 302-311
Author(s):  
Christo Ackermann
Keyword(s):  
Internal Control ◽  
Qualitative Content Analysis ◽  
Internal Audit ◽  
Analysis Data ◽  
Audit Committees ◽  
Annual Reports ◽  
The Public ◽  
Starting Point ◽  
Role Players ◽  
Control Work

The purpose of this paper is to holistically examine internal audit’s internal control functioning, by adopting a data transformation triangulation design. This entailed using questionnaire data and transformed qualitative content analysis data, to perform triangulation. It was found that internal audit functions (IAFs) are important role players in assisting audit committees in their internal control oversight responsibility and that a broad range of internal control work is performed by internal audit. However, in the public eye, there is scant information on IAFs’ functioning and a gap exists between what IAFs actually do and what is presented in public annual reports. The methodology used can be useful for future mixed method studies exploring the broad field of internal auditing. The results of this paper can be used as a starting point to create guidance on internal audit disclosure in public reports and to cultivate further research in the area of internal audit disclosure.

scholarly journals Corporate governance, intellectual capital and performance: Evidence from the public sector in the GCC

2017 ◽  
Vol 7 (4) ◽  
pp. 23-29 ◽  
Author(s):  
Udo Braendle ◽  
Assaad Farah ◽  
Patrick Balian
Keyword(s):  
Corporate Governance ◽  
Public Sector ◽  
Organizational Performance ◽  
Intellectual Capital ◽  
The Public ◽  
Structural Capital ◽  
And Performance ◽  
Unique Study ◽  
Sector Data ◽  
Do So

This unique study tries to link corporate governance, intellectual capital and organizational performance in the public sector in the Gulf Cooperation Council (GCC). To do so we collected data from 371 managers in public entities within the GCC region. Our findings indicate the importance of corporate governance (in form of human, social and structural capital) to enhance performance in the public sector. Not only have those, results showed that the examined forms of capital are interrelated. We therefore support earlier findings that attribute impact of intellectual capital variables on performance. These results are highly relevant within the context of the GCC public sector. The findings of the papers help both, scholars and practitioners: the findings of the paper help to better understand the links between corporate governance and intellectual capital. Further, the study provides – based on GCC public sector data - the unique opportunity to see the interrelationships between corporate governance, intellectual capital and performance within the GCC public sector.

scholarly journals PENGARUH CORPORATE GOVERNANCE TERHADAP TAX AVOIDANCE PADA PERUSAHAAN PERTAMBANGAN YANG TERDAFTAR DI BEI

2017 ◽  
Vol 6 (2) ◽  
Author(s):  
Uun Sunarsih ◽  
Ade Refany Oktavia
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Tax Avoidance ◽  
Secondary Data ◽  
Audit Committees ◽  
Management Decision ◽  
Company Performance ◽  
Governance Mechanism ◽  
Corporate Governance Mechanism ◽  
Management Audit

This study aims to examine the effect of corporate governance on tax avoidance. This research isconducted on mining companies listed in BEI period 2012-2015. The method used purposivesampling and obtained 10 companies. The data used is secondary data can be downloadedwww.idx.co.id. The results of this study conclude ROA does not affect tax avoidance, because thecompany tries to obtain high profit as an indicator of company performance. Institutional ownership has no effect, it may not be able to supervise any management decision. Managerialownership is influential, it is possible that managerial ownership can increase optimal supervision. The board of independent commissioners is influential, indicating the greater the composition of the commissioner the better the performance. Audit committee is influential, indicatingthe number of audit committees able to improve supervision on management. Audit qualityinfluences indicates that the audit services used can reduce tax avoidance measures.Keywords: Return On Asset, Corporate Governance Mechanism, Tax Avoidance

scholarly journals Using management control to understand public sector corporate governance changes

2017 ◽  
Vol 13 (4) ◽  
pp. 548-567 ◽  
Author(s):  
Laurence Ferry ◽  
Thomas Ahrens
Keyword(s):  
Corporate Governance ◽  
Public Sector ◽  
Public Interest ◽  
Local Authority ◽  
Management Control ◽  
Management Control System ◽  
Content Type ◽  
The Public ◽  
Governance Practices ◽  
And Performance

Purpose Within the context of recent post-localism developments in the English local government, this paper aims to show, first, how management controls have become more enabling in response to changes in rules of public sector corporate governance and, secondly, how changes in management control systems gave rise to new corporate governance practices. Design/methodology/approach Theoretically, the paper mobilises the concept of enabling control to reflect on contemporary changes in public sector corporate governance. It draws on the International Federation of Accountants’ (IFAC) and Chartered Institute of Public Finance and Accountancy’s (CIPFA) new public sector governance and management control system model and data gathered from a longitudinal qualitative field study of a local authority in North East England. The field study used interviews, observation and documentation review. Findings This paper suggests specific ways in which the decentralisation of policymaking and performance measurement in a local authority (present case) gave rise to enabling corporate governance and how corporate governance and management control practices went some way to aid in the pursuit of the public interest. In particular, it shows that the management control system can be designed at the operational level to be enabling. The significance of global transparency for supporting corporate governance practices around public interest is observed. This paper reaffirms that accountability is but one element of public sector corporate governance. Rather, public sector corporate governance also pursues integrity, openness, defining outcomes, determining interventions, leadership and capacity and risk and performance management. Practical implications Insights into uses of such enabling practices in public sector corporate governance are relevant for many countries in which public sector funding has been cut, especially since the 2007/2008 global financial crisis. Originality/value This paper introduces the concept of enabling control into the public sector corporate governance and control debate by fleshing out the categories of public sector corporate governance and management control suggested recently by IFAC and CIPFA drawing on observed practices of a local government entity.

Sign in / Sign up

Export Citation Format

Share Document