Proceedings of 10th Asia - Pacific Business and Humanities Conference
22 - 23 February 2016, Hotel Istana, Kuala Lumpur, Malaysia
ISBN: 978-1-925488-00-5
The Role Effectiveness of Audit Committee in Saudi Listed
Companies
Mohammed Alshetwi*
Abstract
This paper examines the AC effectiveness in carrying out their role of improving FRQ.
Based on sample of 101 listed nonfinancial Saudi companies, for the fiscal year of 2014,
the current study finds that AC independence and meetings are positively significantly
related to improve the effectiveness of AC in improving the FRQ. However, the size and
competency don't have an impact. The results imply that the governance structure to
improve the effectiveness of AC of Saudi listed companies needs to be revised. The
findings shed light on the measurement of AC independence and suggest that the majority
of independent director is a good indicator of AC effectiveness.
Keywords: Audit Committee, Competency, Independence, Diligence, Financial
Reporting Quality
The field of research: Accounting
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*College of Business& Economics, Qassim University, Saudi Arabia; Tele: 00966163800050, Ext: 3077.