Conflict of opinion on accounting policy judgements

Independence, knowledge and problem-solving ability of audit committees in Malaysia

Rita Anugerah, Takiah Mohd Iskandar, Zuraidah Mohd Sanusi

    Research output: Contribution to journalArticle

    Abstract

    This study employs a field experiment to investigate the effectiveness of audit committee monitoring role. The study relates three audit committee characteristics, independence, financial knowledge and problem-solving ability with judgements on conflicts of opinion between management and auditors on accounting policy. Participants are members of audit committees of public listed companies in Malaysia. Using a Partial Least Squares (PLS) analysis, results show that independence, financial knowledge and ability to solve problems influence audit committee judgements. Financial knowledge mediates the effect of problem-solving ability on the judgements. There is a need for a proper membership selection policy to improve audit committee effectiveness.

    Original languageEnglish
    Pages (from-to)340-358
    Number of pages19
    JournalInternational Journal of Business Governance and Ethics
    Volume6
    Issue number4
    DOIs
    Publication statusPublished - Jan 2011

    Fingerprint

    Problem solving
    Malaysia
    Accounting policy
    Audit committee
    Financial knowledge
    Auditors
    Field experiment
    Partial least squares
    Listed companies
    Monitoring

    Keywords

    • Audit committee
    • Independence
    • Judgement
    • Knowledge
    • Problem-solving ability

    ASJC Scopus subject areas

    • Business and International Management
    • Strategy and Management
    • Organizational Behavior and Human Resource Management

    Cite this

    Conflict of opinion on accounting policy judgements : Independence, knowledge and problem-solving ability of audit committees in Malaysia. / Anugerah, Rita; Iskandar, Takiah Mohd; Sanusi, Zuraidah Mohd.

    In: International Journal of Business Governance and Ethics, Vol. 6, No. 4, 01.2011, p. 340-358.

    Research output: Contribution to journalArticle

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