| Currently, managing and supervising the activities of public joint-stock companies is one of the main issues in the economic system of various countries, including Iran. Thus, in many countries, corporate governance policies play an important role and the audit committee, as one of the committees of the board of directors in public companies, plays a key role in establishing and overseeing these policies. Since one of the most important duties and responsibilities of the audit committee is its supervisory role and the responsibility for monitoring all financial activities of the company, it is necessary to explain indicators to evaluate the supervisory function of audit committees. This study aims to explain supervisory indicators to evaluate the performance of audit committees, to formulate the supervisory indicators in the form of a questionnaire. To this end, the indicators were developed and tested by surveying professional and academic experts and also members of the audit committees of firms listed on the Tehran Stock Exchange and the Iranian OTC Market. The results showed that the supervisory indicators of audit committees in the Iranian capital market encompass four dimensions including supervision on financial reporting processes, supervision on internal controls, supervision on internal audit, and supervision on the independent auditor. Besides, these dimensions were categorized into 21 sub-indicators. |
- Stock Exchange and Securities Organization, Internal Control Instructions for Publishers Listed in Tehran Stock Exchange or OTC Iran, approved by the Board of Directors of the Stock Exchange and Securities Organization on May 5, 2012.
- Stock Exchange and Securities Organization, Charter of the Audit Committee, approved by the Board of Directors of the Stock Exchange and Securities Organization on May 5, 2012.
- Stock Exchange and Securities Organization, Charter of Internal Audit, approved by the Board of Directors of the Stock Exchange and Securities Organization on May 5, 2012.
- Price Water House Coopers Auditing Institute (2003), Audit Committees; Good Practices for Fulfilling Market Expectations (Translated by Gh. Bolo & A. Madahi; 2010), Stock Exchange and Securities Organization Publications.
- Audit Committee Manual based on the instructions and regulations of the Stock Exchange and Securities Organization (Ebrahimi et al., 2014), Stock Exchange and Securities Organization Publications.
- Performance evaluation of the audit committee, National Conference on Corporate Governance, (Maroufkhani, M. & Darabi, R.; 2015), Al-Zahra University.
- Azad, A. & Bakhtiari, M. (2011) The position of the audit committee, internal audit, and internal controls in the corporate governance system. Certified Public Accountant Quarterly, 13, 92-98.
- Abdulaziz Alzeban. (2015). Influence of Audit Committee Industry Expertise on Internal Audit. International Journal of Business and Management.
- AICPA, Audit Committee Toolkit, (2021).
- Al-Shaer., Haly., S. and Steven, T. (2017). Audit committee and financial reporting quality: evidence from UK environmental accounting disclosures, Journal of Applied Accounting Research, 18, 2-21.
- Alzeban, A. (2015) "Influence of Audit Committee Industry Expertise on Internal Audit”, International Journal of Business and Management, 10: 4, 26-34.
- American Institute of Certified Public Accountants (AICPA) (2017). The AICPA Audit Committee Toolkit.
- Arense, A. Alvin and Loebbecke, James K. (2003). Auditing an integrated approach. Upper Saddle River, NJ: Prentice-Hall.
- 2006. Audit committee performance self-assessment surveys. Available: http://www.auditnet.org/doc/IIANOVA?AC-Assess.pdf (accessed on 29 March 2006).
- , Chen, Songsheng & Komal, Bushra. (2018). Audit committee financial expertise and earning quality: A meta-analysis. Journal of Business Research: 84, 253-270.
- CEAOB, (2021). Analysis of Audit Committee indicators
- Choi, Y.K. Han, S.H., Lee, H. (2014). Audit committees, corporate governance, and shareholder wealth: Evidence from Korea. Journal of Accounting Public Policy, 33, 470-489.
- (2017) Audit committee performance evaluation: self-assessment checklist, Deloitte Development LLC.
- Ernest & Young. 2004. Board performance – non-executive directors and their contribution to business performance. Non-executive director research.
- Ernst & Young, (2018) Audit committee member toolkit, Ernst&Young LLP.
- (2013). "Global Observations on the Role of the Audit Committee”, Center for Audit Quality, ICAA. May, Brussels, Belgium.
- KPMG, (2018) Audit Committee Questions, Audit Committee Institute part of KPMG Board Leadership Centre, kpmg.com/globalaci.
- KPMG's Audit Committee Institute (KPMG). 2017 a. An approach to effective audit committee self-evaluation.
- KPMG's Audit Committee Institute (KPMG). 2006 a. A practical guide – shaping the UK audit committee agenda.
- KPMG, (2020) an Irish partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”).
- Leblanc Diagnostics. 2005. Board effectiveness benchmarking. Available: http://leblancdiagnostics.com/Products/ACED/?content+Benefits (accessed on 12 January 2007).
- Matari, Y, Saif Mohammed, S, Al-Matari, E. (2017)" Audit Committee Activities and the Internal Control System of Commercial Banks Operating in Yemen”, International Reviewing Management and Marketing, 7: 1, 191- 196.
- PWC, (2018) Self-assessment of the performance of the audit committee, pwc.en/boardroom.
- Sun, Jerry & Lan, George & Liu, Guoping (2014), Independent audit committee characteristics and real earnings management, emeraldinsight.com.
- , M., Lee, M. and Chuang, J. (2015) " Relations among audit committee establishment, information transparency and earnings quality: evidence from simultaneous equation models”, Quality and Quantity, 50:6, 2417 – 2431.
|
1؛ Fatemeh Sarraf
1؛ Majid Maroufkhani 