Audit_committee_busyness_financial_reporting_Chapter5_Part1.docx

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CHAPTER 5SUMMARY AND CONCLUSION5.0 IntroductionThe audit committee is becoming an important mechanism in corporategovernanceasthe board has delegated the task of monitoring financial reporting qualitytotheauditcommittee. Therefore, efforts to identify what constitutes an "effective"auditcommittee, continues unabated. In recent years, the issue of auditcommitteebusynesshas become a serious concern as there is some doubt whether busy auditcommitteescancope with various corporate governance reforms and their onerousrequirements.Thereis also significant discussion among the regulators that insufficientattention,timeandcommitment by the directors, are among the contributing factors to theescalating noncompliance with the regulations and number of finesimposed on the listed companies.Therefore, the busyness of audit committee directors is a contemporary
corporategovernance issue which can be further examined to determine the auditcommittee'seffectiveness. This study is in response to this emerging issue; it focusesonadditionalattributes of the audit committee, namely the external and internalbusynessandtheirassociation with financial reporting quality. While there are several studiesontheassociation between audit committee busyness and financial reportingquality,thisstudyextends the literature by measuring the busyness of audit committee,includingauditcommittee chair and financial expert, from dual perspectives, namelyexternalandinternal busyness.

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Term
Summer
Professor
N/A
Tags
Regression Analysis, Financial audit, audit committee

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