Corporate Governance Quality, Audit Fees and Non‐Audit Services Fees

Zaman, Mahbub; Hudaib, Mohammed; Haniffa, Roszaini

doi:10.1111/j.1468-5957.2010.02224.x

Cited by 250 publications

(287 citation statements)

References 71 publications

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“…However, this finding contrasted that of [11,14,17]. The results found in [12] on the relationship between audit committee expertise and audit fees also contrasted with the findings of [13,16,15,17]. Similarly, [15] and [17] found that the frequency of audit committee meetings has a significant and positive relationship with audit fees did not support the findings of [11] and [12].…”

Section: Introductioncontrasting

confidence: 58%

“…The results found in [12] on the relationship between audit committee expertise and audit fees also contrasted with the findings of [13,16,15,17]. Similarly, [15] and [17] found that the frequency of audit committee meetings has a significant and positive relationship with audit fees did not support the findings of [11] and [12]. In the study of [12], there was no evidence to show that board independence has a significant relationship with audit fees; this result was not supported by [13,15,17].…”

Section: Introductionmentioning

confidence: 61%

“…Similarly, [15] and [17] found that the frequency of audit committee meetings has a significant and positive relationship with audit fees did not support the findings of [11] and [12]. In the study of [12], there was no evidence to show that board independence has a significant relationship with audit fees; this result was not supported by [13,15,17]. The differences opinions in the US, the UK and Australia could be due to the country variations of corporate governance requirements.…”

Section: Introductionmentioning

confidence: 82%

“…These studies are based on settings in the US [11,12,13], the UK [14,15,16], Australia [17] and Malaysia [18,19,20].…”

Section: Introductionmentioning

confidence: 99%

“…[15] and [12] found that audit committee independence has a significant and positive relationship with audit fees. However, this finding contrasted that of [11,14,17].…”

Section: Introductionmentioning

confidence: 99%

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Corporate Governance Quality and Audit Quality in Malaysia

2017

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Abstract. This paper examines the impact of corporate governance quality on audit quality in Malaysia. The sampling frame is 457 Malaysian non-finance listed companies, over the periods 2003 (pre-2007 Code period) and 2008to 2012 (post -2007 Code period), consisting of 2,285 observations for each period. This study uses pooled ordinary least square (OLS) to test the research hypotheses and model. The results show that the effectiveness of the audit committee (AC) has no significant influence on audit fees in the pre-and post-2007 Code period, and the effectiveness of the board has no significant influence on audit fees in the pre-2007 Code period, although it has significant influence on audit fees in the post-2007 Code period. The results suggest that the existing corporate governance framework in relation to AC has limitation in its governance role on audit process. Our study contributes to existing literature conducted in the US, the UK and Australia where their institutional settings are different from that of Malaysia. In addition, our study is based on the 2007 Code's recommendation which contributes to the previous research conducted in Malaysia and provides an insightful evidence to the regulator on the corporate governance regime in Malaysia.

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Section: Introductioncontrasting

confidence: 58%

Section: Introductionmentioning

confidence: 61%

Section: Introductionmentioning

confidence: 82%

“…These studies are based on settings in the US [11,12,13], the UK [14,15,16], Australia [17] and Malaysia [18,19,20].…”

Section: Introductionmentioning

confidence: 99%

“…[15] and [12] found that audit committee independence has a significant and positive relationship with audit fees. However, this finding contrasted that of [11,14,17].…”

Section: Introductionmentioning

confidence: 99%

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Corporate Governance Quality and Audit Quality in Malaysia

2017

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Credibility of sustainability reports: The contribution of audit committees

2018

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Concerns about the credibility of sustainability reports can be mitigated through assurance. Although audit committee remit encompasses monitoring of sustainability issues, there are potential complementary and substitution issues between governance mechanisms. This paper explores the relationship between audit committees and sustainability reporting assurance using resource dependency theory. We find audit committee characteristics have an impact, additional to that of the board of directors and the existence of sustainability committees, on voluntary sustainability assurance. Our results also show that audit committee independence is associated with use of a Big Four audit firm for sustainability assurance. A negative association between sustainability committees and assurance, however, indicates assurance could be a burden for small firms. Overall, the findings suggest audit committees add credibility and help improve sustainability reporting through their independence, expertise and oversight.

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Examining the extent of and determinants for sustainability assurance quality: The role of audit committees

et al. 2021

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This study examines the extent of and determinants for sustainability assurance quality. Data comprise sustainability assurance statements published by the top 100 listed companies in Australia and New Zealand from 2017 to 2019. The findings indicate that Australian companies lead their New Zealand counterparts in sustainability assurance. Although sustainability reporting has risen, assurance rates remain significantly low. Accountants dominate the market, and companies prefer to use their own auditors for sustainability assurance work. Sustainability assurance quality is poor and does not vary significantly among Australian and New Zealand companies.Low-quality sustainability assurance plays a limited role in mitigating potential stakeholder-agency conflicts. The regression analysis indicates that audit committee characteristics such as members' independence, industry/market expertise, and attending meetings enhance sustainability assurance quality, whereas audit committee size has no affect. These findings suggest that audit committee characteristics such as independence, industry expertise, and regular meeting attendance have the potential to reduce stakeholder-agency conflicts by improving the quality of sustainability statement assurance. Our findings build on the sustainability assurance literature by exploring current trends in sustainability assurance practices in Australia and New Zealand where corporate governance codes have been recently revised.Further, these findings are timely given recent changes in standards (International Standard on Assurance Engagements [ISAE] 3000 and Global Reporting Initiative[GRI]). Our study contributes to the audit committee literature and sheds light on the role played by audit committee characteristics on sustainability assurance statement quality. The study findings potentially offer useful insights for practitioners, standard setters, and regulators.

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Corporate Governance Quality, Audit Fees and Non‐Audit Services Fees

Cited by 250 publications

References 71 publications

Corporate Governance Quality and Audit Quality in Malaysia

Corporate Governance Quality and Audit Quality in Malaysia

Credibility of sustainability reports: The contribution of audit committees

Examining the extent of and determinants for sustainability assurance quality: The role of audit committees

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