Internal auditors' perceptions of audit committee function and effectiveness: Some Malaysian evidence
Empirical evidence on the relationship between internal auditors and audit committees (AC) interactions remain scant. This paper presents data based on in-depth interviews of chief internal auditors (CIAs) from 11 large publicly listed companies in Malaysia. Our findings indicate that ACs are perceived to provide significant support for strengthening an internal audit function's (IAF) organisational position and for monitoring management's follow-up actions. Concurrently, AC effectiveness is also seen as reliant on the IAF's capability to provide relevant and reliable information. Suggestions for improving the AC-IAF relationship include ACs to be more broad-based with better financial management knowledge, improved communication skills and a commitment to promoting a corporate culture that supports 'honesty', 'professionalism' and 'respect'. These findings also highlight the need for current governance guidelines to further expand on the leadership and communication aspects of ACs.
Symposium on Accountability, Governance and Performance in Transition