scholarly journals Audit Committees Oversight Of Information Technology Risk

2003 ◽  
Vol 7 (4) ◽  
pp. 1-12 ◽  
Author(s):  
Linda B. Hadden ◽  
Dana R. Hermanson ◽  
F. Todd DeZoort
Keyword(s):  
Information Technology ◽  
Exploratory Study ◽  
Audit Committee ◽  
Audit Committees ◽  
Company Size ◽  
Factors Associated ◽  
It Risk

This exploratory study examines the role of the audit committee in overseeing information technology (IT) risk. We address the degree of audit committee oversight of specific IT risks, as well as factors associated with variations in audit committee IT oversight. Based on responses from 39 audit committee members, we found (1) little audit committee emphasis on oversight of IT risks, (2) audit committees involved with IT oversight focus on more traditional risks (e.g., monitoring), while very little attention is devoted to IT acquisition and implementation, and (3) the amount of IT oversight is positively associated with the responding members auditing experience and prior familiarity with the COBIT model for assessing IT risks. Audit committee independence, diligence, and expertise, company size, and industry were not significantly associated with IT oversight.

Factors Associated with U.S. Public Companies' Investment in Internal Auditing

2005 ◽  
Vol 19 (2) ◽  
pp. 69-84 ◽  
Author(s):  
Joseph V. Carcello ◽  
Dana R. Hermanson ◽  
K. Raghunandan
Keyword(s):  
Audit Committee ◽  
Internal Audit ◽  
Cash Flows ◽  
Financial Service ◽  
Company Size ◽  
Internal Auditing ◽  
Public Companies ◽  
Ability To Pay ◽  
Factors Associated ◽  
Operating Cash Flows

Internal auditing has been the focus of much attention in recent years. This study examines factors associated with U.S. public companies' investment in internal auditing. Data from a survey administered to Chief Audit Executives of midsized U.S. public companies were supplemented with publicly available data. Based on data from 217 companies, the results indicate that total internal audit budgets (inhouse plus outsourced portions) are related to several factors associated with company risk, ability to pay for monitoring, and auditing characteristics. Specifically, we find evidence that internal audit budgets are positively related to company size, leverage, financial, service, and utility industries, relative amount of inventory, operating cash flows, and audit committee review of the internal audit budget. Total internal audit budgets are negatively related to the percentage of internal auditing that is outsourced. This study contributes to our understanding of internal audit services, and it allows companies to benchmark their investment in internal auditing.

scholarly journals Corporate Social Responsibility, Audit Committee Expertise, and Financial Reporting: Empirical Evidence from Korea

2021 ◽  
Vol 13 (19) ◽  
pp. 10517
Author(s):  
Haeyoung Ryu ◽  
Soo-Joon Chae ◽  
Bomi Song
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Reporting ◽  
Audit Committee ◽  
Earnings Quality ◽  
Audit Committees ◽  
Accounting Expertise ◽  
Corporate Social

Corporate social responsibility (CSR) involves multiple activities and is influenced by the cultural and legal environment of the country in which a firm is located. This study examines the role of audit committees’ (AC) financial expertise in the relationship between CSR and the earnings quality of Korean firms with high levels of CSR. Using a multivariate analysis, it investigates whether the ACs that include members with accounting expertise, finance expertise, or supervisory expertise individually affect a firm’s decision making. It also examines how ACs with diverse expertise contribute toward improving the financial reporting quality of firms with high levels of CSR. The results demonstrate that when there is a certified accountant in the AC of a firm that practices CSR based on ethical motivation, the earnings management through discretionary accruals is more strictly controlled. This is more effective when the AC comprises members with accounting and non-accounting expertise. This finding implies that the AC plays a positive role in improving the accounting information quality of firms with CSR excellence. Moreover, while the role of accounting experts in the AC is important for maintaining high earnings quality, combining other types of expertise creates synergy.

scholarly journals Faktor-Faktor yang Mempengaruhi Tax Avoidance

2020 ◽  
Vol 20 (1) ◽  
pp. 131
Author(s):  
Anis Susilowati ◽  
Riana Rahmawati Dewi ◽  
Anita Wijayanti
Keyword(s):  
Cash Flow ◽  
Audit Committee ◽  
Stock Exchange ◽  
Tax Avoidance ◽  
Audit Committees ◽  
Company Size ◽  
Sales Growth ◽  
Sample Data ◽  
Analytical Tools ◽  
Research Show

The research aims to determine the influence of company size, leverage, profitability, sales growth, audit committee, and cash flow operations against tax avoidance. Dependent variables in this study are tax avoidance while the independent variables used in this research are company size, leverage, profitability and audit committees. This research is focused on the LQ45 company listed on the Indonesia Stock Exchange (IDX) period 2015-2018. The selection of samples in this study used the purposive sampling method, thus obtained a sample of 51 sample data from the LQ45 company population listed on the Indonesia Stock Exchange (IDX) period 2015-2018. The analytical tools used in this study are multiple linear regression analyses. The results of this research show that the variable cash flow operations affect the tax avoidance, while the company size variables, leverage, profitability, sales growth and audit committees do not affect the tax avoidance.

scholarly journals DETERMINANTS OF EARNING PERSISTENCE

ACCRUALS ◽  
2020 ◽  
Vol 4 (01) ◽  
pp. 104-119
Author(s):  
Ardela Soehartinah Gunawan ◽  
Icih Icih ◽  
Trisandi Eka Putri
Keyword(s):  
Firm Size ◽  
Audit Committee ◽  
Sampling Method ◽  
Stock Exchange ◽  
Sample Selection ◽  
Audit Committees ◽  
Earnings Persistence ◽  
Managerial Ownership ◽  
Company Size ◽  
Observation Period

This study aims to determine the effect of firm size, leverage, managerial ownership, listing age and audit committee on earnings persistence. The data used is data on banking companies listed on the Indonesia Stock Exchange (IDX) period 2015-2017. The sample selection uses a purposive sampling method. The samples that fit the criteria were 29 companies during the 2015-2017 observation period, so that the final number of observational data was 87 (3 × 29). Then data were analyzed using the SPSS 22 application.The results of this study indicate that firm size, managerial ownership and listing age do not affect earnings persistence. While leverage and audit committees negatively affect earnings persistence. Variables of company size, leverage, managerial ownership, listing age and audit committee jointly influence the persistence of earnings.

The role of audit committees in mitigating earnings management: evidence from Jordan

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Taha Almarayeh ◽  
Modar Abdullatif ◽  
Beatriz Aibar-Guzmán
Keyword(s):  
Developing Countries ◽  
Earnings Management ◽  
Audit Committee ◽  
Discretionary Accruals ◽  
Least Square ◽  
Audit Committees ◽  
Institutional Setting ◽  
Content Type ◽  
The Impact

PurposeThis study examines the relationship between audit committees (ACs) and earnings management (EM) in the developing country context of Jordan. In particular, it investigates whether audit committee attributes, including their size, independence, expertise and meetings, are able to restrict discretionary accruals as a proxy for EM.Design/methodology/approachThe generalized least square (GLS) regression was used to study the association between audit committee attributes and discretionary accruals, as a proxy of EM, for a sample of industrial firms listed on the Amman Stock Exchange (ASE) during the period 2012–2020. Data were obtained from the firms' annual reports.FindingsThe regression results indicate that audit committee independence is the only audit committee attribute that seems to improve the effectiveness of ACs, in that it is significantly associated with less EM, while other audit committee attributes that were tested do not show statistically significant associations.Research limitations/implicationsIn emerging markets, like Jordan, ACs may not be an efficient monitoring mechanism; therefore, it can be argued that the prediction made by the agency theory about the role of ACs in mitigating opportunistic EM activities does not necessarily apply to all contexts.Practical implicationsA better understanding of audit committee effectiveness in developing countries could help regulators in these countries assess the impact of planned corporate governance (CG) reforms and to better monitor and enhance the performance of ACs.Social implicationsIn a setting characterized by closely held companies, high power distance and low demand for high-quality CG mechanisms, this study contributes to understanding how this business system operates, and how improving CG mechanisms could be successful in such cultures.Originality/valueThis study investigates the under-researched relationship between audit committee characteristics and EM in developing countries. In so doing, it aims to provide new insights into this relationship within the developing context case of Jordan, including if and how the institutional setting influences this relationship.

scholarly journals Audit committee quality and audit report lag: the role of mandatory adoption of IFRS in Saudi companies

Accounting ◽  
2021 ◽  
pp. 167-178
Author(s):  
Mahfod Mobarak Aldoseri ◽  
Nasr Taha Hassan ◽  
Magdy Melegy Abd El Hakim Melegy
Keyword(s):  
Financial Reporting ◽  
Audit Committee ◽  
Audit Committees ◽  
Strong Impact ◽  
Audit Report ◽  
Before And After ◽  
Mandatory Adoption ◽  
The Impact ◽  
Weak Influence

This paper aims to examine the effect of audit committee characteristics on audit report lag, and also explores whether this effect will vary between before and after mandatory adoption of IFRS in Saudi listed companies. Based on a Saudi sample of 388 firm-year observations from 2015 to 2018, the Poisson regression analysis shows that among audit committee characteristics, only audit committee financial experience significantly influences the timing of financial reporting. The result indicates a weak influence of audit committees on timeliness of financial reporting, which is consistent with the results of most of previous studies. On the other hand, the results show a strong impact of the adoption of IFRS on the context of that relationship, where the results show the impact of IFRS on audit report lag, audit committee quality and the association between them.

Factors associated with security/cybersecurity audit by internal audit function

2018 ◽  
Vol 33 (4) ◽  
pp. 377-409 ◽  
Author(s):  
Md. Shariful Islam ◽  
Nusrat Farah ◽  
Thomas F. Stafford
Keyword(s):  
Audit Committee ◽  
Internal Audit ◽  
Mixed Effect ◽  
Content Type ◽  
Internal Auditors ◽  
Factors Associated ◽  
Security Breaches ◽  
Internal Audit Function ◽  
Enterprise Risk

Purpose The purpose of the study is to explore the factors associated with the extent of security/cybersecurity audit by the internal audit function (IAF) of the firm. Specifically, the authors focused on whether IAF/CAE (certified audit executive [CAE]) characteristics, board involvement related to governance, role of the audit committee (or equivalent) and the chief risk officer (CRO) and IAF tasked with enterprise risk management (ERM) are associated with the extent to which the firm engages in security/cybersecurity audit. Design/methodology/approach For analysis, the paper uses responses of 970 CAEs as compiled in the Common Body of Knowledge database (CBOK, 2015) developed by the Institute of Internal Auditors Research Foundation (IIARF). Findings The results of the study suggest that the extent of security/cybersecurity audit by IAF is significantly and positively associated with IAF competence related to governance, risk and control. Board support regarding governance is also significant and positive. However, the Audit Committee (AC) or equivalent and the CRO role are not significant across the regions studied. Comprehensive risk assessment done by IAF and IAF quality have a significant and positive effect on security/cybersecurity audit. Unexpectedly, CAEs with security certification and IAFs tasked with ERM do not have a significant effect on security/cybersecurity audit; however, other certifications such as CISA or CPA have a marginal or mixed effect on the extent of security/cybersecurity audit. Originality/value This study is the first to describe IAF involvement in security/cybersecurity audit. It provides insights into the specific IAF/CAE characteristics and corporate governance characteristics that can lead IAF to contribute significantly to security/cybersecurity audit. The findings add to the results of prior studies on the IAF involvement in different IT-related aspects such as IT audit and XBRL implementation and on the role of the board and the audit committee (or its equivalent) in ERM and the detection and correction of security breaches.

Die öffentliche Funktion des Prüfungsausschusses

2019 ◽  
Author(s):  
Nora Schaffer
Keyword(s):  
Financial Reporting ◽  
Public Interest ◽  
Audit Committee ◽  
Supervisory Board ◽  
Balance Of Power ◽  
Audit Committees ◽  
State Supervision ◽  
Government Supervision ◽  
Supervisory Boards

The audit committee of public interest entities performs a public function through its auditing of financial reporting, which can be broadly broken down into three facets: (i) its role of relieving the burden on the state by supplementing or replacing government supervision, (ii) its role as guarantor of the capital market’s confidence and (iii) its role as guarantor of an audit and thus as the ‘guarantor of the guarantor’. This public function is emphasised by the recent introduction of hitherto non-systemic state supervision of supervisory boards and audit committees. This supervision is, however, to be viewed critically as it could result in the beginnings of ‘stock authorities’. This study examines how the aforementioned public function radiates to the other supervisory bodies in companies, namely the auditor and the supervisory board. It also examines the dangers which European strengthening of audit committees pose to corporate governance based on the dualistic system and to the balance of power in public limited companies.

Sign in / Sign up

Export Citation Format

Share Document