Governance mechanisms and audit fees in Islamic banking institutions in Malaysia

Ahmad, Maslina and Annuar, Hairul Azlan and Vendy, Vicky (2019) Governance mechanisms and audit fees in Islamic banking institutions in Malaysia. Research Report. UNSPECIFIED. (Unpublished)

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Abstract

The purpose of this study is to examine whether corporate governance mechanisms affect the audit process in terms of audit fees in Islamic banking institutions in Malaysia. The governance mechanisms are the characteristics of board of directors (size and independence), the characteristics of audit committee (size, expertise, independence and meetings) and the characteristics of shariah committee (size and expertise). The annual reports of 16 Islamic banks in Malaysia for seven years (2011-2017) were examined. From panel data regression using 112 observations of the study sample, this study finds that audit committee independence and shariah committee expertise have significant association with audit fees. This study provides support for the step up practice recommended in MCCG 2017 regarding the importance of establishing audit committee that comprises solely independent directors. It also suggested that the shariah committee with accounting qualification/background could ensure not only the shariah-compliance of Islamic banking and finance business but also decrease the external audit fees.

Item Type:	Monograph (Research Report)
Additional Information:	3649/74086
Uncontrolled Keywords:	Governance Mechanisms, Audit Fees, Islamic Banks, Annual Reports, Shariah Committee
Subjects:	H Social Sciences > HF Commerce > HF5001 Business. Business Administration > HF5601 Accounting. Bookkeeping H Social Sciences > HF Commerce > HF5001 Business. Business Administration > HF5717 Business communication H Social Sciences > HF Commerce > HF5001 Business. Business Administration > HF5735 Business records management
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 MASLINA AHMAD
Date Deposited:	01 Dec 2019 12:47
Last Modified:	01 Dec 2019 12:47
URI:	http://irep.iium.edu.my/id/eprint/74086

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