The effect of audit committee and external auditor characteristics on financial reporting quality

This study aims to examine the relationship between audit committee characteristics and external auditors’ characteristics (independent variables) and financial reporting quality (dependent variable). Past studies related to the financial reporting quality has limited scope with regard to Malaysian...

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Main Author:	Mohammad, Aram Jawhar
Format:	Thesis
Language:	eng eng
Published:	2015
Subjects:	HF5601-5689 Accounting
Online Access:	https://etd.uum.edu.my/5581/1/s815020_01.pdf https://etd.uum.edu.my/5581/2/s815020_02.pdf
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id	my-uum-etd.5581
record_format	uketd_dc
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
advisor	Abdul Manaf, Kamarul Bahrain
topic	HF5601-5689 Accounting
spellingShingle	HF5601-5689 Accounting Mohammad, Aram Jawhar The effect of audit committee and external auditor characteristics on financial reporting quality
description	This study aims to examine the relationship between audit committee characteristics and external auditors’ characteristics (independent variables) and financial reporting quality (dependent variable). Past studies related to the financial reporting quality has limited scope with regard to Malaysian background. The novelty of this research, therefore, is that it accounts for two different dimensions of audits characteristics i.e. audit committee characteristics and external auditors’ characteristics that are examined in the same schema. The study used the sample firms from the Bursa Malaysia, explicitly top 100 performing firms according to the Bursa Malaysia stock exchange. The analysis of annual reports has proven that audit committee (independence, expertise, and diligence) has the prediction capability to financial reporting quality. Although results indicate that industry leader has significant impact on financial reporting quality, but on other side, large audit firms do not have any significant effect on financial reporting quality. This study adds the knowledge of audit committee practices and procedures in accounting literature regarding Malaysian context. The results of this study cannot be generalized because study used top 100 performing firms from Malaysia. The results of this study might be changed if future researches use different set of sample firms
format	Thesis
qualification_name	masters
qualification_level	Master's degree
author	Mohammad, Aram Jawhar
author_facet	Mohammad, Aram Jawhar
author_sort	Mohammad, Aram Jawhar
title	The effect of audit committee and external auditor characteristics on financial reporting quality
title_short	The effect of audit committee and external auditor characteristics on financial reporting quality
title_full	The effect of audit committee and external auditor characteristics on financial reporting quality
title_fullStr	The effect of audit committee and external auditor characteristics on financial reporting quality
title_full_unstemmed	The effect of audit committee and external auditor characteristics on financial reporting quality
title_sort	effect of audit committee and external auditor characteristics on financial reporting quality
granting_institution	Universiti Utara Malaysia
granting_department	Othman Yeop Abdullah Graduate School of Business
publishDate	2015
url	https://etd.uum.edu.my/5581/1/s815020_01.pdf https://etd.uum.edu.my/5581/2/s815020_02.pdf
_version_	1747827954339020800
spelling	my-uum-etd.55812021-04-04T07:43:01Z The effect of audit committee and external auditor characteristics on financial reporting quality 2015 Mohammad, Aram Jawhar Abdul Manaf, Kamarul Bahrain Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business HF5601-5689 Accounting This study aims to examine the relationship between audit committee characteristics and external auditors’ characteristics (independent variables) and financial reporting quality (dependent variable). Past studies related to the financial reporting quality has limited scope with regard to Malaysian background. The novelty of this research, therefore, is that it accounts for two different dimensions of audits characteristics i.e. audit committee characteristics and external auditors’ characteristics that are examined in the same schema. The study used the sample firms from the Bursa Malaysia, explicitly top 100 performing firms according to the Bursa Malaysia stock exchange. The analysis of annual reports has proven that audit committee (independence, expertise, and diligence) has the prediction capability to financial reporting quality. Although results indicate that industry leader has significant impact on financial reporting quality, but on other side, large audit firms do not have any significant effect on financial reporting quality. This study adds the knowledge of audit committee practices and procedures in accounting literature regarding Malaysian context. The results of this study cannot be generalized because study used top 100 performing firms from Malaysia. The results of this study might be changed if future researches use different set of sample firms 2015 Thesis https://etd.uum.edu.my/5581/ https://etd.uum.edu.my/5581/1/s815020_01.pdf text eng public https://etd.uum.edu.my/5581/2/s815020_02.pdf text eng public masters masters Universiti Utara Malaysia (PCAOB), P. C. A. O. B. (2007). An Audit of Internal Control over Financial Reporting That Is Integrated with an Audit of Financial Statements. Auditing Standard No. 5. PCAOB Washington, DC. Abbott, L. J., Parker, S., & Peters, G. F. (2004). Audit committee characteristics and restatements. Auditing: A Journal of Practice & Theory, 23(1), 69–87. Abbott, L. J., Parker, S., & Peters, G. F. (2012). Internal audit assistance and external audit timeliness. Auditing: A Journal of Practice & Theory, 31(4), 3–20. Abbott, L. J., Parker, S., Peters, G. F., & Raghunandan, K. (2003). The association between audit committee characteristics and audit fees. 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