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Two Dueling Perspectives on Audit Committees: A Second-Order Analysis

Journal Article


Abstract


  • Over the last three decades, research on the impact of audit committees has proliferated. Yet, to date, there is little theoretical and empirical agreement regarding the question of how audit committees impact financial disclosure, auditors’ roles, and earnings management. The main objective of this research review is to assess the existing literature by focusing on emerging trends and identifying several avenues for future research. Using content analysis of over 138 articles published in the top 19 accounting and finance journals from 1988 up to the year 2016, research on how the audit committee has evolved over time is analyzed. The analysis of this study is important to know how problems, opinions, perspectives, and causes of data combine and change insights about financial disclosure, auditors’ role, and earnings management during specific time periods. Effects inspire future studies to analyze the collision of institutional and context-specific factors on the contribution (anticipated) of board strategies, also how to implement alternative means to adequately catch the result of audit committee methods. Best governance practices plus the emphasis upon audit committee implementation and control, however, may hinder the director’s contribution towards stakeholders. This study contributes to making investors and policy-makers consider the requirements for an effective strategic task when they nominate board members and develop new regulations.

UOW Authors


  •   Bhavani, Ganga (external author)
  •   Yasser, Qaiser (external author)
  •   Mamun, Abdullah Al

Publication Date


  • 2020

Citation


  • Bhavani, G., Yasser, Q. R. & Al-Mamun, A. (2020). Two Dueling Perspectives on Audit Committees: A Second-Order Analysis. Accountancy Business and the Public Interest, 19 92-107.

Number Of Pages


  • 15

Start Page


  • 92

End Page


  • 107

Volume


  • 19

Place Of Publication


  • United Kingdom

Abstract


  • Over the last three decades, research on the impact of audit committees has proliferated. Yet, to date, there is little theoretical and empirical agreement regarding the question of how audit committees impact financial disclosure, auditors’ roles, and earnings management. The main objective of this research review is to assess the existing literature by focusing on emerging trends and identifying several avenues for future research. Using content analysis of over 138 articles published in the top 19 accounting and finance journals from 1988 up to the year 2016, research on how the audit committee has evolved over time is analyzed. The analysis of this study is important to know how problems, opinions, perspectives, and causes of data combine and change insights about financial disclosure, auditors’ role, and earnings management during specific time periods. Effects inspire future studies to analyze the collision of institutional and context-specific factors on the contribution (anticipated) of board strategies, also how to implement alternative means to adequately catch the result of audit committee methods. Best governance practices plus the emphasis upon audit committee implementation and control, however, may hinder the director’s contribution towards stakeholders. This study contributes to making investors and policy-makers consider the requirements for an effective strategic task when they nominate board members and develop new regulations.

UOW Authors


  •   Bhavani, Ganga (external author)
  •   Yasser, Qaiser (external author)
  •   Mamun, Abdullah Al

Publication Date


  • 2020

Citation


  • Bhavani, G., Yasser, Q. R. & Al-Mamun, A. (2020). Two Dueling Perspectives on Audit Committees: A Second-Order Analysis. Accountancy Business and the Public Interest, 19 92-107.

Number Of Pages


  • 15

Start Page


  • 92

End Page


  • 107

Volume


  • 19

Place Of Publication


  • United Kingdom