Tracking the development of audit committees in Singapore listed companies

Purpose - This study aims to show how best practices and baseline surveys influence the development of the audit committees (ACs) in Singapore Listed Companies over the period from 2008 to 2019. Design/methodology/approach - This is a descriptive study of the evolution of the composition and attributes of ACs through data collected from the annual reports of listed companies in Singapore for the period from 2008 to 2019. It analyzes the development of the ACs arising from the best practices in the market and disclosures on ACs over this period. Findings - The results show positive developments in the composition and attributes of ACs as advocated by best practices in the market which are derived from the Singapore Code of Corporate Governance and various studies on the roles and functions of effective ACs. The study also shows that disclosing the extent of compliance of the ACs to best practices helps them to progress. It clearly shows that progressive ACs are influenced by both best practices in the market and disclosure requirements. Practical implications - This study is important for regulation and policy promulgation on ACs to support a well-functioning capital market. This paper strongly encourages capital markets to embark on such baseline surveys to allow them to have a better understanding of the state of the ACs of their listed companies. Originality/value - This is an original descriptive study that provides evidence on the development of ACs over time to converge toward market best practices on ACs. Disclosure of the state of compliance to best practices is a powerful force for progression.