ARTÍCULO
TITULO

The Impact of Audit Quality, Audit Committee and Financial Reporting Quality: Evidence from Malaysia

Shahanif Hasan    
Aza Azlina Md Kassim    
Mohamad Ali Abdul Hamid    

Resumen

In recent decades, there has been a noticeable increase in the practice of earnings management as a proxy for financial reporting, especially real activities, with effect on the quality of financial statements. The role of the audit committee in mitigating earnings management remains ambiguous because of inconclusive findings. Therefore, this study examines the moderating effect of audit quality and audit committee on financial reporting quality, also known as REM inn Malaysian companies. The results show that corporate governance mechanism such as financial accounting expert, meeting and indicate significant results with real earnings management while, audit committee independence and size, shows an insignificant result on real earnings management. In addition, the results show that audit quality of the audit committee leads to less aggressive earnings management practice in real activities. The findings also show that audit quality and audit committee has a significant role in restricting the real earnings management. Audit quality is found to significantly moderate the relationship between audit committee with financial reporting quality proxy. Overall, this study provides a reference point for the relevant parties such as regulatory bodies, policymakers and standard setters towards improving the quality of earnings and corporate governance practices in ensuring credible accounting information.Keywords: audit committee effectiveness, audit quality, real earnings management, MalaysiaJEL Classifications: G3, M42DOI: https://doi.org/10.32479/ijefi.10136

 Artículos similares

       
 
Adanan Silaban, Manatap Berliana Lumban Gaol, Meilinda Stefani Harefa     Pág. 103 - 114
Work pressure is a demand in the work environment that can cause individuals to experience stress, and subsequently can have an impact on individual attitudes, intentions and behavior in carrying out tasks. In the audit firm's work environment, auditors ... ver más

 
Hidaya Al Lawati and Khaled Hussainey    
We investigate the determinants of key audit matters (KAMs) in the auditor?s report. In particular, we examine the impact of overlapped audit committee (AC) directors on the quantity of KAMs disclosure. We also examine the consequences of KAMs disclosure... ver más

 
Wahyu Febri Ramadhan Sudirman,Anggun Pratiwi,Ravi Adams     Pág. 91 - 108
The board of directors is one of the components of corporate governance used by the company to improve the firm's performance both in the long and short term so that the characteristics of the board become one of the key factors to running a good governa... ver más

 
Yasmin Yasmin, Hartati Wau, Nabila Tatcher, Nintha Katharina     Pág. 1087 - 1096
In this investigation, it is relied upon to test the influence of the audit committee as measured by the size of the number of committee members, and external audit is measured by whether the company uses the big four watchdog or not, then profitability ... ver más

 
Elif Güneren Genç,Basak Erdem     Pág. 60 - 66
The role of audit profession and the implementation of new audit standards are aimed to improve the quality of audit reports and one of the recent improvements is the inclusion of Key Audit Matters (KAM) as a separate section in the auditor?s report. The... ver más