Analyzing audit committee effectiveness: the case of audit committee expert

• Main Authors: AlSaih, Tareq Abdulhameed Manea, Mohamad Nor, Mohamad Naimi
• Format: Conference or Workshop Item
• Language: English
• Published: 2019
• Subjects: HF5601 Accounting
• Online Access: http://repo.uum.edu.my/26652/1/ZAWED%202019%20161%20170.pdf; http://repo.uum.edu.my/26652/

The need of effective audit committee has been stipulated in various codes of corporate governance around the world. The Malaysian Code of Corporate Governance (MCCG) and Bursa Malaysia Listing Requirements also emphasized for companies to establish audit committee which, among others, consist of financial expert members. Having expert as part of the committee able the committee to effectively monitor auditing and accounting activities of the companies. However, there are various type of expertise that need to be considered by companies in selecting audit committee members. Members may developed their expertise based on prior working experience or academic/professional qualifications. This article discussed two types of audit committee expertise (experience and qualification) and its influence towards financial reporting and audit quality. The article also highlighted some areas that could be investigated in the future particularly in the context of audit committee effectiveness in Malaysia.