Internal governance structure plays a role in improving quality of financial reporting, thus determining external audit fee is very important. The objective of this study is to examine the association between external audit fees and internal governance structure (boards and audit committee characteristics). The methodology used based on the sample of 115 companies listed on the Bursa Malaysia Main Market in 2015. It is hypothesized that external audit fees will be positively associated with board of director and audit committee’s independence, expertise and meeting frequency. As a result, the findings reveal that no variable found to be significant to external audit fee except for audit committee expertise (audit committees who being accounting professional members). Audit committee expertise indicate negative and significant relationship with external audit fee which implies that the existence more audit committee member who possess accounting professional certification tend to provide complementary effect towards audit effort in the process of negotiating audit fee, thus lower audit fee will be paid. The study suggests there are opportunities to include other variables such as director’s remuneration, ownership structure or /and audit tenure for future research.
Keywords: Corporate Governance, Boards of Directors, Audit Committees, External Audit Fee, Malaysia
The study has designed an educational game-based learning through the introduction of an interactive game called “bicycle accounting classification game”. The game was created to stimulate interest in learning basic financial accounting courses that are normally portrayed as a serious subject. The bicycle accounting classification game tool kit has been developed as a learning and teaching aid to enable students to collaborate and engage in the financial accounting course. The main purpose of the study is to identify the effectiveness of the tool as a mechanism to enhance students’ learning motivation investigated through individual psychological needs of autonomy, competence and relatedness in a financial accounting course. The sampling was implemented to 4 accounting lecturers and one computer science lecturer in a small group tryout and 30 non accounting students in field tryout. Questionnaires were used for data collection and analyzed using quantitative methods. From the experimental results, it is discovered that the bicycle accounting classification game has contributed to the positive learning motivation, in terms of promoting their learning participation and improving their learning excitement and understanding in the financial accounting course given that knowledge organizing, and sharing is embedded in the collaborative gaming environment.
Problem statement: This research was intended to contribute to the one of Corporate Governance mechanism on transparency and disclosure on the financial statements. Approach: As in the recent development of findings from Financial Statements Review Committee (FSRC) that company did not disclose of Material expenses and not classified accordingly. Results: This study provides an evidence for the transparency level on income statements with regards of firms' characteristics of 150 main and second boards companies listed on the Bursa Malaysia. The characteristics were grouped into three groups of variables: structural (firm size, leverage and number of shareholder), market related (listing type and industry type) and performance (profit margin, return on equity and liquidity). The study was started with the development of a Transparency Index based on the percentage of the details of expenses disclosed in annual reports (notes to the accounts) over the total expenses of the company. The findings suggested that this index on the average for the companies in the sample is about 64% with three companies scoring transparency index of 100%. Both univariate and multivariate statistical analysis were performed on the data. The stepwise regression method indicated that only one variable was significant at 5% which was the Number of Shareholders (LnNOSH). The other factors were not significant. Hence, this study will contributes to the enhancement of knowledge regarding income statements transparency and disclosure practices under new reporting regime in Malaysia. Conclusion/Recommendations: This study also served as a basis for further research in this area. This study also suggested that further research should be done on longitudinal study basis for several years of data with more appropriate or suitable variables to the model.
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