Download or read book Board Characteristics and Audit Fees written by Joseph V. Carcello and published by . This book was released on 2000 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the relationship between board characteristics and external audit fees for Fortune 1000 companies. Competing arguments exist regarding the possible relationship between board characteristics and fees.One view is that a more independent, diligent, and expert board would be more concerned with effectively discharging its monitoring role and would be more supportive of the external audit function. Such a board would be likely to insist on enhanced audit scope, thus increasing the audit fee. An alternative view is that a more independent, diligent, and expert board would reduce the auditor's assessment of control risk and would substitute some of its own monitoring for the monitoring of the auditor. This would reduce audit effort, thus decreasing the audit fee.Consistent with the first view, we find significant positive relationships between board independence, diligence, and expertise and audit fees. A more independent, diligent, and expert board does not appear to substitute for audit effort; rather, such a board may complement auditor oversight.These results add to the growing body of literature documenting a relationship between corporate governance mechanisms and various facets of the financial reporting and audit processes. In addition, the results add to our understanding of the determinants of audit fees.

Download or read book Board Characteristics Audit Committee Independence and Auditor Fees written by Dr. Rajnish Kumar and published by . This book was released on 2017 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the effect of level of corporate governance measured in terms of the board of directors' and the audit committee's characteristics on auditor fees in the Indian corporate sector. In particular, we examine the effect of the board of directors' and the audit committee's independence, diligence, expertise and size on audit fee, non-audit fee and the ratio of non-audit fee to audit fee for the top 100 companies listed on the National Stock Exchange for the financial year 2012-13. We hypothesize that an independent, diligent, experienced and a larger board of directors require higher audit quality and hence higher audit and non-audit fees. However, there is no effect of audit committee's characteristics (independence, diligence, expertise and size) on audit and non-audit fees because of inherent dependence of the audit committee on the board as envisioned by the Companies Act, 2013. The results indicate that an independent board defined as the proportion of independent directors in the board positively affects the audit fee and there is no effect of the audit committee's characteristics on auditor fees. Even after controlling for audit committee's characteristics in the board of directors' model, an independent board and chairperson positively affect the auditor fees.

Download or read book The Effect of Audit Committee Characteristics and Non Audit Fees on Audit Fees written by Lawrence Abbott and published by . This book was released on 2009 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study examines the association between audit committee characteristics and audit fees, using data gathered under the recent SEC fee disclosure rules. We hypothesize that audit fees will be higher in the presence of an active and independent audit committee. Our base our hypothesis upon two premises. First, we argue that independent and active audit committees demand a higher level of audit quality due to concerns about monetary or reputational losses arising from financial misstatements. This higher audit quality demand may manifest itself in a higher amount of audit coverage, which, in turn should result in a concomitantly higher audit fee. Second, independent and active audit committees may give rise to greater auditor fee bargaining power. We examine a sample of 262 non-regulated, Big 5-audited firms that filed both 10-K and proxy forms with the SEC in the period from 2/5/2001 to 3/23/2001. Audit committees comprised solely of independent directors that meet at least four times annually are significantly, positively associated with audit fees. This evidence is consistent with audit committee members taking actions within their span of control to ensure a higher level ofaudit coverage, as well as facilitating auditor independence. Finally, we also examine the impact of non-audit fees on audit fees. We document a significantly positive association between audit fees and non-audit fees, consistent with prior research from the early 1980's.

Download or read book Organizational Auditing and Assurance in the Digital Age written by Marques, Rui Pedro and published by IGI Global. This book was released on 2019-02-15 with total page 426 pages. Available in PDF, EPUB and Kindle. Book excerpt: Auditing is constantly and quickly changing due to the continuous evolution of information and communication technologies. As the auditing process is forced to adapt to these changes, issues have arisen that lead to a decrease in the auditing effectiveness and efficiency, leading to a greater dissatisfaction among users. More research is needed to provide effective management and mitigation of the risk associated to organizational transactions and to assign a more reliable and accurate character to the execution of business transactions and processes. Organizational Auditing and Assurance in the Digital Age is an essential reference source that discusses challenges, identifies opportunities, and presents solutions in relation to issues in auditing, information systems auditing, and assurance services and provides best practices for ensuring accountability, accuracy, and transparency. Featuring research on topics such as forensic auditing, financial services, and corporate governance, this book is ideally designed for internal and external auditors, assurance providers, managers, risk managers, academicians, professionals, and students.

Download or read book Corporate Governance written by Robert A. G. Monks and published by Wiley-Blackwell. This book was released on 2003-12-19 with total page 584 pages. Available in PDF, EPUB and Kindle. Book excerpt: In the wake of the dramatic series of corporate meltdowns: Enron; Tyco; Adelphia; WorldCom; the timely new edition of this successful text provides students and business professionals with a welcome update of the key issues facing managers, boards of directors, investors, and shareholders. In addition to its authoritative overview of the history, the myth and the reality of corporate governance, this new edition has been updated to include: analysis of the latest cases of corporate disaster; An overview of corporate governance guidelines and codes of practice in developing and emerging markets new cases: Adelphia; Arthur Andersen; Tyco Laboratories; Worldcom; Gerstner's pay packet at IBM Once again in the new edition of their textbook, Robert A. G. Monks and Nell Minow show clearly the role of corporate governance in making sure the right questions are asked and the necessary checks and balances in place to protect the long-term, sustainable value of the enterprise. A CD-ROM containing a comprehensive case study of the Enron collapse, complete with senate hearings and video footage, accompanies the text. Further lecturer resources and links are available at www.blackwellpublishing.com/monks

Download or read book The Impact of Demographic Characteristics of CEOS and Directors on Audit Fees and Audit Delay written by Maretno A. Harjoto and published by . This book was released on 2015 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This study examines the impact of gender and ethnicity of CEO and audit committee directors on audit fees and audit delay in the U.S. firms. Audit related corporate governance literature has extensively examined the determinants of audit fees and audit delay by focusing on board characteristics, specifically board independence, diligence, and expertise. We provide empirical evidence that gender and ethnicity diversity in corporate leadership and boardrooms influence a firm's audit fees and audit delay. This study finds that firms with female and ethnic minority CEOs pay significantly higher audit fees than those with male Caucasian CEOs. We also find that firms with a higher percentage of ethnic minority directors on their audit committee pay significantly higher audit fees. Further, we find that firms with female CEOs have shorter audit delay than firms with male CEOs and firms with a higher percentage of female and ethnic minority directors on their audit committee are associated with shorter audit delay. Our results indicate that female CEOs and both female and ethnic minority directors are sensitive to the market pressure to avoid audit delay. Our results suggest that gender and ethnic diversity could improve audit quality and the firms' overall financial reporting quality. This study provides insights to regulators and policy makers interested in increasing diversity within a firm's board and top executives. Recently, the U.S. Securities and Exchange Commission (SEC) and the European Commission have been pressing publicly traded companies to improve diversity amongst their directors. This study provides evidence and perspective on how diversity can enhance financial reporting quality measured by audit fees and audit delay.

Download or read book Board Characteristics and External Audit Quality written by M. Rabah Gana and published by . This book was released on 2016 with total page 7 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this paper, we examine the impact of directors' board on external audit quality over the period 2003-2007 for 96 Belgian listed companies on the Euronext Brussels Stock Exchange. We measure audit quality by using an index for that. To construct the index of audit quality IQAUD, we follow the approach of Depeors (2010). Five attributes are considered: Big4 auditor, co-auditor, Big4 auditor and co-audit, seniority of auditor and audit fees.The composition of the index IQAUD is determined by using the “step by step” method of Cronbach's alpha coefficient (Curt et al., 1997). This procedure allows finding a subset of items that must be as reliable as possible. The results of our regression model, using panel data, confirm that external audit quality and board characteristics (independence and diligence) are complementary mechanisms. However, we can't conclude to any significant relationship of audit quality with board dual structure and its size.

Download or read book The Relationship Between Audit Committee Characteristics Financial Statement Restatements and Audit Fees written by Samirah Saleh M. Almutairi and published by . This book was released on 2019 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Do Auditors Price Audit Committee s Expertise The Case of Accounting Vs Non Accounting Financial Experts written by Gnanakumar Visvanathan and published by . This book was released on 2008 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The issue of whether audit pricing reflects the effectiveness of the audit committee is of fundamental interest to auditors, managers, and others. Auditors are expected to price the effectiveness of the audit committee because it relates to the control risk and thus, the overall audit risk. This study examines the relation between audit fees and a key determinant of the audit committee's effectiveness, i.e., the financial expertise of the audit committee. Though the Sarbanes-Oxley Act mandates the disclosure of a financial expert, the SEC defined experts broadly to include accounting or non-accounting financial experts. Does audit pricing differentiate between accounting and non-accounting financial expertise? For a sample of Samp;P 500 firms for the years 2000 through 2002, we find that after controlling for several board and audit committee characteristics and firm characteristics, audit pricing is negatively related to accounting financial expertise. However, this finding is conditional upon the strength of the overall governance structure. We do not find a significant relation between audit fees and accounting financial expertise for observations with weak governance structure. Overall, our evidence is consistent with the SEC's initial narrow definition to include only the accounting financial experts. The lack of a significant relationship between non-accounting financial expertise and audit fees suggests that auditors perceive only accounting financial expertise contributes to audit committee's effectiveness.

Download or read book The Effect of Regulatory Oversight on the Association Between Internal Governance Characteristics and Audit Fees written by El'fred Boo and published by . This book was released on 2007 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: We examine the relationship between internal governance, external audit monitoring and regulatory oversight for a sample comprising industrial companies and financial/utility companies subject to additional industry-specific regulation. Our results indicate that the association between audit fees and board/audit committee (i) independence and (ii) size are weaker for regulated companies. These observations are consistent with the notion that regulatory oversight partially substitutes the external audit as a monitoring mechanism. Boards/audit committees with more multiple directorships, however, demand a more extensive audit in the presence of regulatory oversight to protect their reputation capital. Our study enhances our understanding of the complex relationships amongst the major corporate governance elements.

Download or read book An Empirical Investigation of Audit Fees Non audit Fees and Audit Committee Characteristics written by Lock-Wai Vincent Ho and published by . This book was released on 2006 with total page 168 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Audit Committees and Financial Reporting Quality written by Chaudhry Ghafran and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis examines the impact of audit committee characteristics on financial reporting quality in the context of a large sample of UK companies over the period 2007-2010. The notion of financial reporting quality is assessed by looking at the audit quality and earnings quality of the firms. This study utilises the audit fee and non-audit fee ratio as its proxies for audit quality and accruals based earnings management models as its proxies for earnings quality. The findings from the multivariate analysis show that audit committee meetings and financial expertise exert a significant positive impact on audit fees. Investigating expertise further, this study finds no support for the notion that accounting expertise influences audit fees, however a significant positive influence on audit fees is recorded for the non-accounting financial expertise. However, the holding of additional directorships has a significant negative impact on audit fees. This study also finds that audit committee members' financial expertise has a negative and significant impact on non-audit fee ratio suggesting a strong support of members with financial expertise on issues relating to auditor independence. The study also documents that audit committee members serving longer on the boards do not prefer to purchase high amount of non-audit services from the incumbent auditor. This study also records a significant positive impact of the holding of additional directorships on the provision of non-audit fee ratio, thus signifying a profound support for the busyness hypothesis which argues that overstretched directors are not very good monitors of financial reporting quality. Furthermore, this study finds broadly consistent evidence that audit committees meeting three or more times per year and fully independent audit committees exert a significant positive impact on the quality of reported earnings. This study also finds some evidence (depending on the earnings model used) that the level of ownership of audit committee members also exerts a positive impact on the quality of reported earnings, highlighting the fact that audit committee members with an equity stake in their companies are considered more effective in their oversight of the financial reporting process. On the other hand, this study finds evidence that the busyness of audit committee members (busyness defined in terms of the holding of board seats in other companies) has a significant negative impact on the quality of reported earnings. The composite variables (i.e. ACE1, ACE2, ACE3 and ACE4) representing those companies that satisfy all aspects of current best practice in terms of audit committee composition and operation, has a positive impact on the quality of reported earnings. This study covers the period 2007 to 2010 and therefore offers a contemporary analysis of the influence of audit committee characteristics on financial reporting quality. The study is very comprehensive in its scope not only in the selection of audit committee characteristics and methods employed to quantify these characteristics, but also in the use of various proxies developed to capture the true essence of financial reporting quality. The choice of multiple measurement methods both for the dependent and independent variables facilitates a much richer investigation into the relationship between governance and financial reporting quality variables. Therefore this study makes a major contribution to our understanding of the association between the various audit committee characteristics and financial reporting quality in the wake of recently introduced regulatory recommendations. These findings will also have policy implications as regulators around the world continue to define and refine the desired characteristics and behaviour of audit committees. Therefore, the findings of this study will ensure future policy changes regarding audit committees are adequately informed.

Download or read book Influence of CG Mechanisms on Audit and Non audit Fees written by Masdiah Abdul Hamid and published by LAP Lambert Academic Publishing. This book was released on 2012 with total page 172 pages. Available in PDF, EPUB and Kindle. Book excerpt: The purpose of this study is to examine the association between fees, board of directors and audit committee characteristics of 191 government linked companies (GLCs) and non-government linked companies (Non-GLCs). Audit tenure was included in order to see the impact of fees paid on the auditor independence. It is hypothesised that corporate governance practices does not affected the auditor's assessment, resulting no affect on the fees payment. A sample of 191 listed GLCs and non-GLCs are used that across three years in 2006 to 2008. Multiple regression analysis was used to estimate the relationship proposed in the hypotheses.

Download or read book Board Characteristics And Its Impact On Firm Free Cash Flows written by Razieh Adinehzadeh and published by LAP Lambert Academic Publishing. This book was released on 2012 with total page 84 pages. Available in PDF, EPUB and Kindle. Book excerpt: This research tries to achieve to provide sufficient view about free cash flow and internal governance in corporate governance (CG) by addressing the relationship between board and audit characteristics with free cash flow. Specifically, this research tries to explore if internal governance practices are substitutes to control agency problem within the Malaysian firms. This book employs panel regression analysis. The panel data set comprise of 50 Malaysian companies (200 observations) which has be done for four consecutive years which comprise of 2005 to 2008. According to samples which has been taken from 2005 to 2008; the results show no significant relationship between board characteristics except board size and free cash flow. Instead, it shows a significant relationship between all audit committee variables except financial expertise and free cash flow. The finding of this book provides that the structure of audit committee is an important element in firm's decisions which consist of deciding on keeping or spending free cash flow in different ways that can be of interests to both managers and shareholders in Malaysian firms.

Download or read book Board Characteristics Audit Committee Characteristics and Abnormal Accruals written by Michael E. Bradbury and published by . This book was released on 2005 with total page 29 pages. Available in PDF, EPUB and Kindle. Book excerpt: Prior research examines the relation between board characteristics and financial reporting violations relating to fraud and earnings overstatement. This paper examines the relation between governance (as measured by board and audit committee characteristics) and accounting quality (as measured by abnormal accruals) where there is no a priori reason to suspect systematic management of earnings. We find both board size and audit committee independence are related to higher quality accounting (i.e., lower abnormal working capital accruals). Furthermore, the relation between audit committee independence and higher quality accounting exists only when the abnormal accruals are income increasing. This suggests that audit committees are effective in the financial reporting process by reducing the level of income increasing abnormal accruals. The results also indicate that audit committees are effective only when they comprise independent directors.

Download or read book Interdependencies Between Auditing and Corporate Governance Evidence from Germany written by Dennis Voeller and published by . This book was released on 2013 with total page 29 pages. Available in PDF, EPUB and Kindle. Book excerpt: We study the empirical relation between audit fees and governance mechanisms in Germany. Using data from German listed companies, we examine the German governance setting with its two-tier board system. Various model specifications control for potential endogeneity of the governance variables. We identify two major findings. First, we find that performance-based management remuneration has a significant positive impact on audit fees. This effect suggests that increased audit risk due to enhanced incentives for earnings management is reflected in higher audit fees. Second, we find a complementary relation between audit fees and the formation of an audit committee. The results regarding further board characteristics are ambiguous.

Download or read book The Impact of Governance Characteristics and Non audit Fees on Audit Pricing written by Roziani Ali and published by . This book was released on 2014 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: