Leng, Ma Wyei and Sulaiman, Noor Adwa and Abdul Jalil, Azlina (2022) The audit committees, internal audit and external audit quality effects on earnings management: an analysis of Malaysian government-linked companies; kesan jawatankuasa audit, audit dalam dan kualiti audit luar terhadap pengurusan perolehan: Analisis syarikat berkaitan kerajaan Malaysia. Jurnal Pengurusan, 66. ISSN 01272713, DOI https://doi.org/10.17576/pengurusan-2022-66-05.
Full text not available from this repository.Abstract
The role of audit governance mechanisms as part of the corporate governance architecture has been promoted to ensure the integrity of the financial reporting process. In order to get insights on their effectiveness, this study investigates the effects of the audit governance mechanism, specifically audit committee, internal audit function and external audit quality on earnings management in Malaysian government-linked companies. Using a cross-sectional variation of the modified Jones Model (1995) to estimate discretionary accruals, this study examined 38 GLCs from 2009–2018, which consisted of 340 firm-year pair observations. Panel data regression analysis was carried out using the generalised least square method to analyse the effect of audit governance mechanisms on earnings management. The findings suggest that lower likelihood of earnings management is associated with the internal audit function. Further analysis on the proxy of internal audit measures suggests that in-house internal audit function is negatively associated with earnings management. This research would provide insights for regulators and management to strengthen in-house internal audit function in order to mitigate earnings management in Malaysian government-linked companies. © 2022 Authors. All rights reserved.
| Item Type: | Article |
|---|---|
| Funders: | None |
| Uncontrolled Keywords: | Audit committee; Earnings management; External auditor; Government-linked companies; Internal audit function |
| Subjects: | H Social Sciences > HF Commerce > Business |
| Divisions: | Faculty of Business and Economics |
| Depositing User: | Ms. Juhaida Abd Rahim |
| Date Deposited: | 01 Dec 2023 06:53 |
| Last Modified: | 01 Dec 2023 06:53 |
| URI: | http://eprints.um.edu.my/id/eprint/44089 |
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