会計とマーケティング

Audit Committee Effectiveness: Relationship with Audit Committee Characteristics and Interaction with the Internal Audit Department: Case of Egypt

Abstract

Elsayed Nasser DAA*

This study examines whether specific audit committee (AC) characteristics, including indpendence, knowledge, experience and training, and interaction between audit committee members and the internal audit function are associated with AC effectiveess. We find that AC effectiveness is higher when members are more independent affected mainly by their ability to express an opinion regarding doubt of continuity and having compensation within the acceptable limits, knowledge and experience affected mainly be the existence of at least one member who as strong accounting, financial and auditing expertise, and effective interaction with internal audit function measured mainly by AC reviews of the programs and procedures related to risk management process and AC determination of the internal audit annual budget. These findings are consistent with an increased demand for higher quality auditing by audit committees, and by firms that make greater use of internal audit.