AUDIT COMMITTEE ATTRIBUTES AND AUDIT QUALITY: A BENCHMARK ANALYSIS

This study examined audit committee attributes and audit quality with emphasis on the specific requirements of the 2011 SEC code. The study applied the deductive approach via the expost facto research design and the Binary probit regression model in analyzing the various hypotheses put forward in study. Data used for the study were gathered for 150 firm-year observations from the annual reports of quoted companies on the floor of the Nigerian Stock Exchange. Findings from the study revealed that audit committee size, frequency of meetings, number of expertise and overall effectiveness all have a positive relationship with audit quality. However, only size and overall effectiveness was significant in their relationship. The study recommends that since the significant positive nature of audit committee effectiveness show that four attributes jointly account for effectiveness, firms are encouraged to establish audit committees that have all these attributes. Furthermore, the requirement of having a 6-member audit committee is sound and empirically proven to aid audit quality. Therefore, firms yet to subscribe to these should hasten up, while sanctions should be made for firms that do not.

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The impact of audit committee characteristics on internal audit professionalization: empirical evidence from Greece

Accounting Research Journal ◽

10.1108/arj-05-2020-0091 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Christina Vadasi ◽

Michalis Bekiaris ◽

Andreas G. Koutoupis

Keyword(s):

Empirical Evidence ◽

Audit Committee ◽

Audit Quality ◽

Research Question ◽

Internal Audit ◽

Audit Committees ◽

Annual Reports ◽

Substantial Impact ◽

Content Type ◽

The Impact

Purpose This paper aims to provide empirical evidence of the association between audit committee characteristics and internal audit quality through internal audit professionalization. Design/methodology/approach The investigation of the research question was based on 45 usable responses that were received from a survey of chief audit executives from firms listed on the Athens Stock Exchange and combined with publicly available information from annual reports. Findings The results indicate that audit committee characteristics (independence, diligence through frequent meetings and interaction with internal audit through valuation) influence internal audit professionalization. In addition, they demonstrate that internal audit professionalization is also influenced by CEO duality and firm’s external auditor. Practical implications The findings of this study have implications for audit committees wishing to improve their overall effectiveness, by identifying areas with substantial impact on internal audit quality. Moreover, regulators of corporate governance bodies can also benefit from the results to strengthen audit committee’s efficiency regarding internal audit function oversight. Originality/value The results add to the literature on the discussion of internal audit professionalization and complement the work of other researchers in the field of audit committee’s impact on internal audit quality/effectiveness. This study attempts to fill a gap in the literature on the effect of audit committee characteristics on internal audit professionalization, an element introduced from an institutional theory perspective.

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The Effect of Corporate Governance on Tax Avoidance: Evidence from Indonesia

Management & Economics Research Journal ◽

10.48100/merj.v2i4.126 ◽

2020 ◽

Vol 2 (4) ◽

pp. 66-85

Author(s):

Feren Frisca Tania ◽

. Mukhlasin

Keyword(s):

Corporate Governance ◽

Internal Control ◽

Audit Committee ◽

Stock Exchange ◽

Tax Avoidance ◽

Secondary Data ◽

Audit Committees ◽

Annual Reports ◽

Manufacturing Companies ◽

Negative Effect

This study aims to analyze the effect of the effectiveness of internal control, independent commissioners, the expertise of the board of commissioners, the number of audit committees, and the expertise of the audit committee on tax avoidance in manufacturing companies listed in Indonesia Stock Exchange period 2016-2018. This research is expected to be a material consideration for companies in making decisions related to taxation. The deductive approach used in this study by developing hypotheses based on relevant theories and findings of previous studies. Agency theory is used to see the effect of corporate governance on tax avoidance. The data collection method uses secondary data from the company's financial statements and annual reports according to specific criteria. Data analysis was performed by descriptive statistics and multiple linear regression. The results of the regression analysis prove that effectiveness of internal control and number of audit committees had a positive effect which means higher effectiveness of internal control and number of audit committees cause more tax avoidance, conversely independent commissioners and expertise of the board of commissioners had a negative effect which shows greater independent commissioners and expertise of the board of commissioners cause less tax avoidance. Another result claim that the expertise of the audit committee did not affect on tax avoidance. In contrast to previous studies, this study is more varied by combining several independent variables. JEL Codes: G34, H26.

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Audit committee’s attributes, overlapping memberships on the audit committee and corporate risk disclosure: Evidence from Jordan

Accounting ◽

10.5267/j.ac.2020.11.008 ◽

2021 ◽

pp. 423-440

Author(s):

Malek Hamed Alshirah ◽

Ahmad Farhan Alshira’h ◽

Abdalwali Lutfi

Keyword(s):

Audit Committee ◽

Stock Exchange ◽

Random Effect ◽

Random Effect Model ◽

Audit Committees ◽

Annual Reports ◽

Risk Disclosure ◽

Committee Membership ◽

Corporate Risk ◽

Level Of Risk

This paper aims to contribute to the literature by examining whether audit committees' attributes affect risk disclosure practiced by Jordanian listed companies. Selecting a sample of 94 Jordanian companies listed on Amman Stock Exchange, the authors carried out a manual content analysis on annual reports to determine the level of risk disclosure. Random effect model was employed in the analysis. Empirical results show that the audit committee size had a positive effect on the level of risk disclosure. However, there was no evidence that the frequency of the audit committee meetings, expertise or overlapping of the audit committee membership were significantly related to the risk disclosure. The findings are important for standard setters to improve their comprehension about the influence of audit committee in disclosing risk information and reconsider the effective monitoring role played by audit committee.

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Presence of Quality of Audit Committee and Organization’s Monetary Data: An In-depth Analysis

Progressive Research Journal of Arts & Humanities (PRJAH) ◽

10.51872/prjah.vol3.iss1.84 ◽

2021 ◽

Vol 3 (1) ◽

pp. 77-91

Author(s):

Ashfaque Ali Banbhan ◽

Najia Shaikh ◽

Khalid Hussain Abbasi

Keyword(s):

Audit Committee ◽

Audit Quality ◽

Stock Exchange ◽

Practical Importance ◽

Positive Association ◽

Audit Committees ◽

Corporate Boards ◽

Audit Process ◽

Depth Analysis

All financial regulatory institutions legally bound their listed companies todisclose the information regarding the formulation of their audit committees.This study quantitatively investigates whether the quality of the auditcommittees affects the quality of a firm’s financial information. Using the dataof publicly listed non-financial companies of Pakistan Stock Exchange, thisresearch found a positive association between audit committee qualitymeasures and the firm’s quality of reported earnings. This study extends theunderstanding of measures for audit committee quality to stabilize thefinancial reporting process as it relates to the ongoing discussion byresearchers and financial regulators. Additionally, the study also increasesthe understanding of the concept of external audit quality for various partieswhich are involved in deliverance of good corporate governance practices; forexample, audit committees, external auditors, corporate boards, and topmanagement team. The study also explores the influencing factors, internal aswell as external, in the audit process by constructing its meaning andexplaining its practical importance. This detailed exploration andinvestigation into the procedures of audit quality are vital because auditing isthe process through which numbers in financial reports are checked and reevaluated for any potential clerical errors and omissions

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KEBIJAKAN KEUANGAN DAN GOOD CORPORATE GOVERNANCE TERHADAP AGRESIVITAS PAJAK

Jurnal Reviu Akuntansi dan Keuangan ◽

10.22219/jrak.v9i3.9845 ◽

2019 ◽

Vol 9 (3) ◽

pp. 327

Author(s):

Setu Setyawan ◽

Endang Dwi Wahyuni ◽

Ahmad Juanda

Keyword(s):

Corporate Governance ◽

Audit Committee ◽

Audit Quality ◽

Stock Exchange ◽

Manufacturing Sector ◽

Capital Intensity ◽

Audit Committees ◽

Financial Policies ◽

Tax Aggressiveness ◽

Good Corporate Governance

This research aims to analyse the effect of financial policy and good corporate governance (GCG) on tax aggressiveness. Financial policies are prokated with leverage, capital intensity and inventory intensity. The GCG used are the institutional ownership, independent Board of Commissioners, audit committees and audit quality. The population is manufacturing sector companies listed on the Indonesia Stock Exchange (IDX) period 2016-2017. Sampling method is used purposive sampling and obtained as much as 56 samples. Data analysis techniques use multiple linear regression using the SPSS 23. The results show that financial policies have an effect on tax aggressiveness. While the GCG on the independent Proxy Commissioner and Audit Committee has an effect on tax aggressiveness, while the other proxies are the ownership of the insitution and audit quality does not affect the aggressiveness of the tax.

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Audit Committee Effectiveness and Audit Fee among Listed Deposit Money Banks in Nigeria

Asian Journal of Economics Business and Accounting ◽

10.9734/ajeba/2020/v20i430329 ◽

2020 ◽

pp. 1-14

Author(s):

Abdulrasaq Mustapha ◽

Abdulrauf O. Isiaka ◽

Kudirat A. Babatunde

Keyword(s):

Audit Committee ◽

Banking Sector ◽

Audit Quality ◽

Random Effect ◽

Gender Diversity ◽

Audit Committees ◽

Annual Reports ◽

P Value ◽

Ex Post ◽

Audit Fee

The persistent cases of corporate accounting scandals which have rocked the Nigerian banking sector in spite of auditor certification of financial statements as free from material error have raised concern not only on the effectiveness of audit committees but also on audit services despite the huge amount charged on their clients. Hence, this study examined the effect of audit committee effectiveness on audit fee of listed deposit money banks in Nigeria. Using an ex-post facto research design, the data sourced through the annual reports of twelve (12) banks for the period between 2012 and 2018 were analysed using random-effect regression analysis. The result of the study revealed that audit committee effectiveness proxy with audit committee audit committee expertise (t-value =3.22 & p-value = 0.000), audit committee diligence (t-value = 3.57, & p-value = 0.000) and audit committee gender diversity (t-value = 3.85 & p-value =0.000) has significant positive effect on audit fee of listed deposit money banks in Nigeria. This implies that an effective audit committee would demand for high audit quality service from the auditor, thereby increasing the audit efforts and time which subsequently result to higher audit fee. The study concluded that an effective audit committee would demand high audit service from the external auditor thereby ensuring that the financial statement published is relevant and of faithful representation.

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Pengaruh Karakter Eksekutif, Ukuran Perusahaan, Kualitas Audit, dan Komite Audit Terhadap Tax Avoidance

JURNAL AKUNTANSI DAN AUDITING ◽

10.14710/jaa.15.2.204-220 ◽

2019 ◽

Vol 15 (2) ◽

pp. 204-220

Author(s):

Retno Pujilestari ◽

Mustika Winedar

Keyword(s):

Linear Regression ◽

Audit Committee ◽

Audit Quality ◽

Stock Exchange ◽

Tax Avoidance ◽

Sampling Technique ◽

Research Data ◽

Audit Committees ◽

Company Size ◽

Mining Companies

This study aims to examine the effect of Executive Character, Company Size, AuditQuality, and Audit Committee on Tax Avoidance. Executive Character is measured bycalculating company risk, Company Size is determined based on company size, AuditQuality is stated based on who KAP audits the company, and Audit Committee isdetermined based on the number of Audit Committees in the company. While TaxAvoidance is measured by CETR. By taking samples of mining companies that areactive and listed on the Indonesia Stock Exchange for the period of 2012 to 2016selected by purposive sampling technique, the research data collected throughdocumentation techniques are then analyzed by multiple linear regression and theresults show that Executive Character, Company Size, Quality Audit, and the AuditCommittee simultaneously have a significant effect on Tax Avoidance. But partiallyonly Audit Quality has an effect on Tax Avoidance.

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Pengaruh Independensi dan Keahlian Komite Audit Terhadap Manajemen Laba Riil dengan Kualitas Audit Sebagai Variabel Moderasi

Jurnal Akuntansi Keuangan dan Manajemen ◽

10.35912/jakman.v2i4.564 ◽

2021 ◽

Vol 2 (4) ◽

pp. 345-358

Author(s):

Ditta Dwi Astuti ◽

◽

Lidya Primta Surbakti ◽

Aniek Wijayanti ◽

◽

...

Keyword(s):

Earnings Management ◽

Audit Committee ◽

Audit Quality ◽

Stock Exchange ◽

Secondary Data ◽

Production Costs ◽

Real Earnings Management ◽

Annual Reports ◽

Panel Data Regression ◽

Negative Effect

Abstract Purpose: This study aimed to analyze the influence of the audit committee's independence and expertise on real earnings management by using audit quality as the moderating variable and firm size, leverage, and profitability as control variables. Research Methodology: Real earnings management was processed by Roychowdhury’s model and it used the abnormal value of operating cash flow, discretionary expenses, and production costs. This study used secondary data from annual reports of non-financial companies listed on the Indonesia Stock Exchange for the period 2017-2019 and the total was 516 companies. This study used panel data regression and was processed by Stata. Results: This study proves that audit committee independence and leverage have a significant negative effect on real earnings management through discretionary expenses and audit quality cannot moderate the relationship between audit committee independence and audit committee expertise on real earnings management. Limitation: The study used audit quality as moderating variable. However, the results cannot prove that audit quality is able to affect real earnings management. Contribution: The results obtained can be used for investors' and creditors' consideration when making investment or loans decisions and can be references for further research.

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Determinants of Audit Firm Selection Decision: A Qualitative Study of Firms Listed on Pakistani Stock Exchange (PSX)

International Review of Management and Business Research ◽

10.30543/9-4(2020)-18 ◽

2020 ◽

Vol 9 (4) ◽

pp. 212-222

Author(s):

MUHAMMAD NAVEED ◽

ALIA QADIR ◽

MUHAMMAD UMER

Keyword(s):

Audit Committee ◽

Audit Quality ◽

Stock Exchange ◽

Information Source ◽

Audit Committees ◽

External Audit ◽

Audit Firm ◽

External Auditors ◽

Selection Decision ◽

Main Determinants

The objective of this study is to offer detailed and updated overview of the factors perceived by the audit committee members to select external auditors. Moreover, the study aims to explore that what are the main determinants perceived by the clients from their external auditors. Qualitative research design is used, and open-ended interviews has been conducted to explore the phenomena under investigation. The contextual setting of the study is provided by financial firms listed on Pakistan stock exchange (PSX-100). The study finds that management continues to provide input into the selection decision of external auditors because the audit committees view management as an important information source. Audit committee seeks input from management to assess the external audit accessibility, reputation, firm’s industry knowledge and technical expertise. The result of the study suggests that more regulations are required to liable the audit committees for selecting external audit firm. The management input raises the audit risk and mitigate the audit independence. The findings remain robust for audit firms and companies looking for an independent and transparent relationship. Also, the study has implications to build transparent financial disclosure practices. Keywords: Audit Quality, Pakistan Stock Exchange, Clients Perceived Value.

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THE EFFECT OF GOOD CORPORATE GOVERNANCE ON TAX AVOIDANCE: EMPIRICAL STUDY OF THE INDONESIAN BANKING COMPANY

The Accounting Journal of Binaniaga ◽

10.33062/ajb.v2i02.92 ◽

2019 ◽

Vol 2 (02) ◽

Author(s):

Waluyo Waluyo

Keyword(s):

Corporate Governance ◽

Tax Evasion ◽

Quantitative Research ◽

Audit Committee ◽

Audit Quality ◽

Stock Exchange ◽

Tax Avoidance ◽

Institutional Ownership ◽

Least Square ◽

Audit Committees

The purpose of this study aims to examine the effect of corporate governance on tax evasion. Corporate governance is proxied represented by the audit committee, the proportion of independent board of commissioners, institutional ownership and audit quality. Tax evasion is measured by the size of the gap of an effective tax rate. This study uses quantitative research design and data from the Finance Authority Service / OJK listed on the Indonesia Stock Exchange. By using purposive sampling in the observation period of 2013-2016, it has obtained 92 observations. The Data has been analyzed by using ordinary least square regression model. Regression results has identified that the proportion of independent board of commissioners and corporate performance have negatively affected tax evasion. Audit committees, audit quality and the size of company positively affected tax evasion. However, the institutional ownership has had no significant effect on tax evasion. These results have indicated that some of the mechanisms of corporate governance in Indonesia have been effective according to its function for the shareholders.

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