Impact of Voluntary Establishment and Quality of Audit Committees on the Internal Control Weakness

• Main Authors: Jhih-Siang Su, 蘇誌翔
• Other Authors: 劉若蘭
• Format: Others
• Language: zh-TW
• Published: 2017
• Online Access: http://ndltd.ncl.edu.tw/handle/bhu3gz

碩士 === 國立臺中科技大學 === 會計資訊系碩士班 === 105 === Using a hand-collected sample of listed firms in Taiwan from 2007 to 2014, this study examines whether the establishment and adoption of an audit committee and its effectiveness could mitigate the incidence of internal control weaknesses (hereafter ICWs). The empirical resultsreveal that the incidence of ICW problems could be depressed by adopting the audit committee voluntarily. Rather than examining audit committee characteristics individually, an “audit committee quality” is established based on six different factors of the audit committee characteristics. This index is used as a proxy measure of the quality of the audit committee. The results reveal that effective audit committees result in greaterdepression of the likelihood of ICWsof Taiwanese firms.