The contingent effects of board independence and audit committee effectiveness on internal audit reliance: a pre-SOX perspective Online publication date: Thu, 12-May-2016
by Ganesh Krishnamoorthy; Mario Maletta
International Journal of Accounting and Finance (IJAF), Vol. 6, No. 1, 2016
Abstract: The period leading up to the Sarbanes-Oxley Act (SOX) witnessed criticism levelled against the auditors regarding audit failures, but limited research exists exploring the positive effects of auditor judgements during the pre-SOX period. This paper explores one such context by examining whether external auditors' judgements relating to internal audit were affected by the audit committee governance strength and accounting expertise, and the level of board independence. Results indicate that the greater the governance strength and accounting expertise of the audit committee, the greater the assessed quality of internal audit, and the greater the overall level of coordination between internal and external audit. Findings also indicate that the positive effects of audit committee characteristics on the external audit process may be attenuated by board independence. Collectively, findings reveal the contingent effects of board independence and audit committee governance and accounting expertise on the relationship between internal and external auditors.
Online publication date: Thu, 12-May-2016
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Accounting and Finance (IJAF):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email firstname.lastname@example.org