The effect of audit committee characteristics on compliance with IFRS for related party disclosures

Yosra Mnif Sellami and Hela Borgi Fendri

Managerial Auditing Journal, 2017, vol. 32, issue 6, 603-626

Abstract: Purpose - The purpose of this paper is to examine the effect of audit committee (AC) characteristics (size, independence, the number of meetings and expertise) on compliance with International Financial Reporting Standards (IFRS) for related party disclosures (CRPD) in the South African context. Design/methodology/approach - This paper is based on an analysis of the consolidated financial statements of 120 non-financial firms listed on the Johannesburg Stock Exchange (JSE) for the period 2012 to 2014. Panel regressions have been used. Findings - The findings of this paper reveal that CRPD is positively influenced by AC independence. However, AC size and the number of AC meetings do not affect CRPD. Regarding expertise, the authors find that there is a positive and significant relationship between CRPD and have combined industry expertise with accounting and financial expertise. However, while accounting expertise by itself is associated with CPRD, industry expertise by itself is not associated with CRPD. Originality/value - To the best of the authors’ knowledge, there are no empirical studies that have addressed the effect of AC characteristics on compliance with IFRS for CRPD.

Keywords: Compliance; Audit committee; Accounting expertise; Industry expertise; Related party disclosures; South Africa (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:eme:majpps:maj-06-2016-1395

DOI: 10.1108/MAJ-06-2016-1395

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