IDEAS home Printed from https://ideas.repec.org/a/hyp/journl/v3y2015i4p3-11.html
   My bibliography  Save this article

Organisations Overseeing through the Audit Committee

Author

Listed:
  • Emilia VASILE

    () (“Athenaeum” University of Bucharest)

  • Ion CROITORU

    () (“Athenaeum” University of Bucharest)

Abstract

The article addresses the main responsibilities of audit committees within organizations, starting from the need for knowledge and understanding of the organization by all members of the audit committee, which must consider both internal factors and external factors. Among internal factors, the organization's internal control system is one of the key elements in the financial reporting process, the concern of maintaining an appropriate control environment. Audit committee members should ensure that management gives the organization a "bon ton", "leading tone", developing an organizational culture that promotes the attitude of compliance and internal control findings and conclusions which help to provide default quality of financial reporting. Good practice issues of Anglo-Saxon and internal control assessment tools for organizations are presented further. Particular attention is paid to risk management and specifically the risk of fraud by the media appetite for such issues can easily affect the organization's brand. The second part of the article discusses the influences of financial failures of recent decades on corporate governance system of organizations in the Anglo-Saxon environment. Particular attention is paid to how the audit committees, these "living consciences" of organizations have adapted their roles and behavior to capture, monitor and influence the overall management culture of organizations.

Suggested Citation

  • Emilia VASILE & Ion CROITORU, 2015. "Organisations Overseeing through the Audit Committee," Hyperion Economic Journal, Faculty of Economic Sciences, Hyperion University of Bucharest, Romania, vol. 3(4), pages 3-11, December.
  • Handle: RePEc:hyp:journl:v:3:y:2015:i:4:p:3-11
    as

    Download full text from publisher

    File URL: https://hej.hyperion.ro/articles/4(3)_2015/HEJ%20nr4(3)_2015_A1Vasile.pdf
    Download Restriction: no

    More about this item

    Keywords

    management; organization; fraud; internal auditors; internal control; external auditors; audit committee;

    JEL classification:

    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing
    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation
    • M49 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Other

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hyp:journl:v:3:y:2015:i:4:p:3-11. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Iulian Panait). General contact details of provider: http://edirc.repec.org/data/fehypro.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.