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Disclosure Of Audit Committees by Public Companies in Australia 1988–1990

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  • Roger Simnett
  • Wendy Green
  • Peter Roebuck

Abstract

The existence of audit committees in public companies can improve the quality of the financial reporting process, aid the actual and perceived independence of both the internal and external auditors, and improve financial statement users' confidence in the quality of the information. These benefits will be enhanced by disclosure of audit committees in the financial statements. This study examined the incidence and form of the disclosure of audit committees in annual reports by major Australian public companies over the period 1988–1990. The results showed that disclosures by larger companies increased during this time. Rates of disclosure varied considerably depending on the auditor and was positively associated with the size of the organisation. Companies with audit committees are encouraged to consider enhanced methods of disclosure such as those outlined in AUP 31 Communication with an Audit Committee.

Suggested Citation

  • Roger Simnett & Wendy Green & Peter Roebuck, 1993. "Disclosure Of Audit Committees by Public Companies in Australia 1988–1990," Australian Accounting Review, CPA Australia, vol. 3(5), pages 43-50, May.
    • Handle: RePEc:bla:ausact:v:3:y:1993:i:5:p:43-50
    DOI: 10.1111/j.1835-2561.1993.tb00144.x
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    References listed on IDEAS

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    1. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    2. Noreen, E, 1988. "An Empirical-Comparison Of Probit And Ols Regression Hypothesis Tests," Journal of Accounting Research, Wiley Blackwell, vol. 26(1), pages 119-133.
    3. Bradbury, Michael E., 1990. "The incentives for voluntary audit committee formation," Journal of Accounting and Public Policy, Elsevier, vol. 9(1), pages 19-36.
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    Cited by:

    1. Jim Psaros & Michael Seamer, 2004. "Australian Audit Committees — Do They Meet Best Practice Guidelines?," Australian Accounting Review, CPA Australia, vol. 14(34), pages 77-85, November.
    2. Lynn Barkess & James Guthrie, 1993. "NSW Public-Sector Audit Committees: A Survey Of Practice," Australian Accounting Review, CPA Australia, vol. 3(6), pages 21-30, November.
    3. R. G. Walker, 2004. "Gaps in Guidelines on Audit Committees," Abacus, Accounting Foundation, University of Sydney, vol. 40(2), pages 157-192, June.
    4. Karen Benson & Peter M Clarkson & Tom Smith & Irene Tutticci, 2015. "A review of accounting research in the Asia Pacific region," Australian Journal of Management, Australian School of Business, vol. 40(1), pages 36-88, February.
    5. Adams, Mike, 1997. "Determinants of audit committee formation in the life insurance industry: New Zealand evidence," Journal of Business Research, Elsevier, vol. 38(2), pages 123-129, February.
    6. Lois Munro & Sherrena Buckby, 2008. "Audit Committee Regulation in Australia: How Far Have We Come?," Australian Accounting Review, CPA Australia, vol. 18(4), pages 310-323, December.
    7. David Hay & Jenny Stewart & Nives Botica Redmayne, 2017. "The Role of Auditing in Corporate Governance in Australia and New Zealand: A Research Synthesis," Australian Accounting Review, CPA Australia, vol. 27(4), pages 457-479, December.
    8. Ganesh M. Pandit & Grace M. Conway & C. Richard Baker, 2017. "Audit committee requirements in six major capital markets: How far have we come?," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 14(1), pages 30-61, February.

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