IIUM Repository

Assessing audit committee effectiveness of a government statutory body: a case study of the Inland Revenue Board of Malaysia

Sheikh Hassan, Ahmad Fahmi and Mamat, Adi Fazuli and Karbhari, Yusuf and Mohamad, Muslim Har Sani (2018) Assessing audit committee effectiveness of a government statutory body: a case study of the Inland Revenue Board of Malaysia. International journal of economics and management, 12 (2 ( Special Issue )). pp. 401-411. ISSN 1823-836X E-ISSN 2600-9390 (In Press)

[img] PDF (In press) - Accepted Version
Restricted to Registered users only

Download (446kB) | Request a copy


This study examines the effectiveness of an Audit Committee (AC) operating in a large government statutory body in an emerging economy, namely the Inland Revenue Board of Malaysia (IRBM). This study is timely, as previous studies focussing on AC effectiveness in relation to the public sector are sparse. Data collection was through in-depth interviews with key individuals involved in the IRBM governance process, including AC members, senior management and external auditors. The study finds existence of a weak AC governance function that inadequately oversees financial reporting and internal control systems. We find the independence of AC members questionable, as a communication gap exists between AC members and the external auditor. In particular, the study highlights that top management should ensure that its AC fulfils its assigned role and that urgent attention is given to issues on composition, appointment and diligence of its AC members. We conclude that the IRBM should consider improving independence by appointing an external independent AC member(s) from either the big four or an influential industry expert to provide the necessary input and expertise to ensure that public confidence continues.

Item Type: Article (Journal)
Additional Information: 2144/69011
Uncontrolled Keywords: Accountability; Audit committees; Effectiveness; Inland Revenue board; Malaysia
Subjects: H Social Sciences > HJ Public Finance > HJ9701 Public accounting
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button): Kulliyyah of Economics and Management Sciences > Department of Accounting
Depositing User: Dr Muslim Har Sani Mohamad
Date Deposited: 09 Jan 2019 11:49
Last Modified: 09 Jan 2019 11:49
URI: http://irep.iium.edu.my/id/eprint/69011

Actions (login required)

View Item View Item


Downloads per month over past year