The impact of audit committee existence and audit committee meeting frequency on the external audit: Perceptions of Australian auditors

Stewart, Jenny D. & Munro, Lois A. (2007) The impact of audit committee existence and audit committee meeting frequency on the external audit: Perceptions of Australian auditors. International Journal of Auditing, 11(1), pp. 51-69.

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Abstract

This article examines the impact of audit committee existence, the frequency of audit committee meetings and the auditor's attendance at meetings on aspects of the external audit. Using an experimental design, we find that the audit committee, the frequency of committee meetings and the auditor's attendance at meetings are significantly associated with a reduction in perceived audit risk. The impact on audit efficiency and audit testing is perceived to be minimal. Manager and partner hours are greater when meetings are more frequent and the partner attends all meetings. The audit committee is expected to provide assistance in resolving conflicts with management and to lead to some improvement in overall audit quality. In neither case is this affected by meeting frequency or the auditor's attendance at meetings. Participants expect the existence of an audit committee to lead to an increase in audit fees, particularly when meetings are more frequent and the auditor is required to attend meetings. Reasons given for any fee increase relate to the additional preparation for and attendance at meetings.

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ID Code: 8747
Item Type: Journal Article
Refereed: Yes
Additional Information: For more information, please refer to the journal's website (see hypertext link) or contact the author.
Author contact details: l.munro@qut.edu.au
Keywords: audit committee, audit committee meetings, external audit, audit fees, audit quality, corporate governance
DOI: 10.1111/j.1099-1123.2007.00356.x
ISSN: 1090-6738
Divisions: Current > QUT Faculties and Divisions > QUT Business School
Copyright Owner: Copyright 2007 The Authors; Journal compilation Copyright 2007 Blackwell Publishing Ltd.
Deposited On: 23 Jul 2007 00:00
Last Modified: 29 Feb 2012 13:31

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