Identifying the audit committee financial expert

Puat Nelson, Sherliza and Devi, S. Susela (2008) Identifying the audit committee financial expert. In: 2008 AFAANZ/IAAER Conference , 6-8 July, 2008, Sydney, Australia. (Unpublished)

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Abstract

In light with the Section 407 of Sarbanes Oxley Act 2002, the audit committee’s role has become a daunting task to hold on to. More prominent responsibilities were put up before them, and especially for firms to identify their financial experts among their audit committee members. Prior literature also shows that there are associations in relation to market performance and earnings quality, if there exist an audit committee with an expertise in financial or accounting in the company. In Malaysia, the mandatory disclosure of naming their financial expert is still far. But, existing requirements do ask for companies to include among the audit committee members, at least one with an accounting or finance background, and, or with a professional accounting qualification. Still, there is insufficient guidance as to how we could identify if someone could be the potential audit committee financial expert. The existing paper intends to look into what it takes to be an audit committee financial expert. Three elements or basis were found from prior literature to form the basis of an expert; experiences, qualification and understanding of financial reporting.

Item Type:	Conference or Workshop Item (Full Paper)
Additional Information:	3486/6748
Uncontrolled Keywords:	Audit committee, financial expert, and expertise
Subjects:	H Social Sciences > HG Finance > HG4001 Financial management. Business finance. Corporation finance.
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Economics and Management Sciences > Department of Accounting
Depositing User:	Sherliza Puat Nelson
Date Deposited:	21 Nov 2011 11:45
Last Modified:	22 May 2012 13:15
URI:	http://irep.iium.edu.my/id/eprint/6748

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