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Audit Committee Activities and the Internal Control System of Commercial Banks Operating in Yemen

Author

Listed:
  • Yahya Ali Al-Matari

    (School of Economics, Finance and Banking, College of Business, Universiti Utara Malaysia, Malaysia,)

  • Sulaiman Abdullah Saif Mohammed

    (School of Economics, Finance and Banking, College of Business, Universiti Utara Malaysia, Malaysia,)

  • Ebrahim Mohammed Al-Matari

    (Tunku Intan Safinaz School of Accountancy, College of Business, Universiti Utara Malaysia, Malaysia, Amran University, Yemen.)

Abstract

This study primarily aims to investigate the impact of audit committee (AC) effectiveness on the internal control system of commercial banks through the use of four of its characteristics namely AC meetings, meeting frequency between AC and internal auditors (IAs), AC reviews and internal audit proposals and lastly, AC reviews of the internal audit results. The study results were obtained by using data gathered from the Yemeni commercial banks through the questionnaire survey method. A total of 88 usable questionnaires out of 170 questionnaires distributed to 17 commercial banks were considered suitable for analysis. The results showed that the AC effectiveness, represented by meetings frequency between AC and IAs, AC reviews of the internal audit proposals, and audit reviews of the internal audit significantly related to the commercial banks performance. Literature regarding AC characteristics that are relevant to the present study was reviewed, and practical implications as well as recommendations for future studies were provided towards the end of the study.

Suggested Citation

  • Yahya Ali Al-Matari & Sulaiman Abdullah Saif Mohammed & Ebrahim Mohammed Al-Matari, 2017. "Audit Committee Activities and the Internal Control System of Commercial Banks Operating in Yemen," International Review of Management and Marketing, Econjournals, vol. 7(1), pages 191-196.
    • Handle: RePEc:eco:journ3:2017-01-26
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    References listed on IDEAS

    as
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    4. Barua, Abhijit & Rama, Dasaratha V & Sharma, Vineeta, 2010. "Audit committee characteristics and investment in internal auditing," Journal of Accounting and Public Policy, Elsevier, vol. 29(5), pages 503-513, September.
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    Cited by:

    1. Hani Shaiti & Yahya Al-Matari, 2020. "Internal Audit Function Characteristics and the Quality of Internal Control Systems: Moderating the Effect of Enterprise Resource Planning System Maturity," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 10(9), pages 1012-1027, September.
    2. Philna Coetzee & Lourens J. Erasmus, 2020. "Driving Audit Committee Disclosure: Legislation Versus Best Practice," Business Perspectives and Research, , vol. 8(1), pages 36-50, January.

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    More about this item

    Keywords

    Corporate Governance; Ýnternal Audit; Audit Committee; Ýnternal Control System; Yemen;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • M4 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting

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