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Author: Ling Lei Lisic Publisher: ISBN: Category : Languages : en Pages : 56
Book Description
In this study, we examine whether audit committee accounting expertise helps to promote audit quality by motivating auditors to conduct diligent internal control audits and make appropriate internal control assessments because audit committee accounting expertise safeguards auditors from dismissal following adverse internal control opinions. Among clients with existing and likely internal control material weaknesses (as proxied by future restatements of audited financial statements), we find a greater likelihood of adverse internal control audit opinions when the audit committee has greater accounting expertise (measured by the proportion of accounting experts on the audit committee). Among all clients, we find a lower likelihood of subsequent auditor dismissal following an adverse internal control audit opinion when the audit committee has greater accounting expertise. In further analyses, we find that this lower likelihood of subsequent auditor dismissal occurs when at least two audit committee members possess accounting expertise. We also find some evidence that chief financial officer influence (but not chief executive officer influence) over the audit committee negates the increased likelihood of adverse internal control opinions when internal control material weaknesses likely exist as well as the decreased likelihood of auditor dismissal following adverse internal control opinions. These findings have important implications for regulators and corporate nominating committees interested in promoting audit committee effectiveness.
Author: Ling Lei Lisic Publisher: ISBN: Category : Languages : en Pages : 56
Book Description
In this study, we examine whether audit committee accounting expertise helps to promote audit quality by motivating auditors to conduct diligent internal control audits and make appropriate internal control assessments because audit committee accounting expertise safeguards auditors from dismissal following adverse internal control opinions. Among clients with existing and likely internal control material weaknesses (as proxied by future restatements of audited financial statements), we find a greater likelihood of adverse internal control audit opinions when the audit committee has greater accounting expertise (measured by the proportion of accounting experts on the audit committee). Among all clients, we find a lower likelihood of subsequent auditor dismissal following an adverse internal control audit opinion when the audit committee has greater accounting expertise. In further analyses, we find that this lower likelihood of subsequent auditor dismissal occurs when at least two audit committee members possess accounting expertise. We also find some evidence that chief financial officer influence (but not chief executive officer influence) over the audit committee negates the increased likelihood of adverse internal control opinions when internal control material weaknesses likely exist as well as the decreased likelihood of auditor dismissal following adverse internal control opinions. These findings have important implications for regulators and corporate nominating committees interested in promoting audit committee effectiveness.
Author: Louis Braiotta Publisher: ISBN: Category : Business & Economics Languages : en Pages : 328
Book Description
The aim of this text is to serve the needs of audit companies. Its emphasis is on how the committee can discharge its responsibilities to the board most effectively. It offers guidance into developing a more useful relationship with the audit commitee.
Author: James D. Whitworth Publisher: ISBN: Category : Accounting Languages : en Pages : 73
Book Description
My dissertation examines the impact of audit committee financial expertise on the circumstances and likelihood of an auditor change. Auditor changes are costly events associated with decreased financial reporting quality. The audit committee is in position to influence the timing and circumstances surrounding these changes through their role overseeing the external financial reporting process. I find that audit committees with greater accounting expertise are associated with fewer auditor changes overall, more auditor dismissals when there is an auditor change, greater industry expertise by the successor auditor, and an increase in financial reporting quality following the auditor change. I find no consistent evidence supporting the impact of supervisory expertise influencing any of the above outcomes.
Author: Curtis C. Verschoor Publisher: John Wiley & Sons ISBN: 0470337079 Category : Business & Economics Languages : en Pages : 258
Book Description
Praise for Audit Committee Essentials "Audit Committee Essentials is an excellent and comprehensive resource, documented with key references and illustrated with real-life company examples for all types of commercial and nonprofit enterprises. Dr. Verschoor brings into focus the intertwined impact of risk management, internal controls, and ethics on oversight responsibilities for both the audit committee and the entire board of directors. From my personal perspective as an audit committee member and as a director of both profit and nonprofit entities, this book should be required reading for corporate management, boards of directors, and their committees." --George K. Gill, Chairman and CEO of PetAg, Inc.; Director and member of the Investment and Audit Committees of the United Methodist Foundation of Northern Illinois "Maintaining the highest ethical standards is critical to the success of not-for-profits in today's world. Dr. Verschoor's book provides a practical, highly prescriptive approach to ensuring that governance processes meet the highest expectations of managers, employees, volunteers, contributors, and other stakeholders. I am very impressed with the readability of the book. It definitely raises one's awareness of the need for a thought-out plan that ensures strong financial and ethical credibility." --John S. Maxson, President and CEO Greater North Michigan Avenue Association, Chicago, Illinois A concise and readable account of the audit committee's roles and responsibilities The Sarbanes-Oxley Act has changed the way all corporations now operate, regardless of size. In Audit Committee Essentials, goverance expert Curtis Verschoor explains with great detail and razor-sharp precision why internal control is so critical, emphasizing financial literacy, a requirement under Sarbanes-Oxley, as well as oversight of the financial reporting process and related controls, ethics and the internal and independent audits. Written for seasoned professionals as well as newly assigned board members, Audit Committee Essentials is a vital tool in order to stay abreast of the rapidly changing governance requirements and responsibilities of audit committees.
Author: Yan Zhang Publisher: ISBN: Category : Languages : en Pages :
Book Description
In this paper we investigate the relation between audit committee quality, auditor independence, and the disclosure of internal control weaknesses after the enactment of the Sarbanes-Oxley Act. We begin with a sample of firms with internal control weaknesses and, based on industry, size, and performance, match these firms to a sample of control firms without internal control weaknesses. Our conditional logit analyses indicate that a relation exists between audit committee quality, auditor independence, and internal control weaknesses. Firms are more likely to be identified with an internal control weakness, if their audit committees have less financial expertise or, more specifically, have both less accounting financial expertise and non-accounting financial expertise. They are also more likely to be identified with an internal control weakness, if their auditors are more independent. In addition, firms with recent auditor changes are more likely to have internal control weaknesses.
Author: Australian Institute of Company Directors Publisher: AICD ISBN: 9781876604042 Category : Business & Economics Languages : en Pages : 56
Book Description
"Role and responsibilities of Audit Subcommittees of Boards. Provides a practical introduction to the role of and responsibilities of the audit committee. Explains the context in which an audit committee typically operates and outlines good practice. Reflects developments in audit committee practice, legislation and gudance from regulatory bodiesand leading global board practices since 2001."--Provided by publisher.
Author: United States. Congress. House. Committee on Financial Services. Subcommittee on Capital Markets and Government Sponsored Enterprises Publisher: ISBN: Category : Accounting Languages : en Pages : 356
Author: Ling Lei Lisic
Author: Ling Lei Lisic
Author: Frank M. Burke
Author: Louis Braiotta
Author: Richard Steinberg
Author: James D. Whitworth
Author: Curtis C. Verschoor
Author: Yan Zhang
Author: Australian Institute of Company Directors
Author: Larry E. Rittenberg
Author: United States. Congress. House. Committee on Financial Services. Subcommittee on Capital Markets and Government Sponsored Enterprises