Big data analytics represents a promising area for the accounting and audit professions. We examine how machine learning applications, data analytics and data visualization software are changing the way auditors and accountants work with their clients. We find that audit firms are keen to use machine learning software tools to read contracts, analyze journal entries, and assist in fraud detection. In data analytics, predictive analytical tools are utilized by both accountants and auditors to make projections and estimates, and to enhance business intelligence (BI). In addition, data visualization tools are able to complement predictive analytics to help users uncover trends in the business process. Overall, we anticipate that the technological advances in these various fields will accelerate in the coming years. Thus, it is imperative that accountants and auditors embrace these technological advancements and harness these tools to their advantage.
Purpose
This study aims to show how best practices and baseline surveys influence the development of the audit committees (ACs) in Singapore Listed Companies over the period from 2008 to 2019.
Design/methodology/approach
This is a descriptive study of the evolution of the composition and attributes of ACs through data collected from the annual reports of listed companies in Singapore for the period from 2008 to 2019. It analyzes the development of the ACs arising from the best practices in the market and disclosures on ACs over this period.
Findings
The results show positive developments in the composition and attributes of ACs as advocated by best practices in the market which are derived from the Singapore Code of Corporate Governance and various studies on the roles and functions of effective ACs. The study also shows that disclosing the extent of compliance of the ACs to best practices helps them to progress. It clearly shows that progressive ACs are influenced by both best practices in the market and disclosure requirements.
Practical implications
This study is important for regulation and policy promulgation on ACs to support a well-functioning capital market. This paper strongly encourages capital markets to embark on such baseline surveys to allow them to have a better understanding of the state of the ACs of their listed companies.
Originality/value
This is an original descriptive study that provides evidence on the development of ACs over time to converge toward market best practices on ACs. Disclosure of the state of compliance to best practices is a powerful force for progression.
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