Audit Committees and Corporate Governance in Public Sector - Article Review
ABSTRACT
The purpose of this paper is to identify the existence of audit committee and the practice of corporate governance in public sector entities. The requirement of audit committee and corporate governance has been increase in the corporate sector and also in public sector but there are small differences in the implementation between this two sector that has been discuss in this study. This study also discuss about the characteristic of audit committee, effectiveness of audit committee, the roles of audit committee and a few past studies about the implementation of audit committee in Malaysia and other country. The result from this review studies found that audit committee and governance has become important tools in public sector since the needs of reliable transparency of financial reporting.
1. INTRODUCTION
The concept of audit committee and corporate governance is not a new concept that has been introduced in accounting. This concept has been practiced by every single company in this world because of audit committees has become increasingly important component in governing the company. It became increasingly recognised as a part of modern control structures and governance practices on both private sector and also public sector. Audit committee is an important element of public accountability and governance process and plays role as key to the integrity in both private and public sector (Vendernest, 2008). This is same with what have been said (Gautier et al 2007), audit committee plays very big roles in every company’s regardless small company or big company audit committees is not only important on business entity but also important to public sector entity, public sector entities include the state and local government, federal agencies, colleges and universities, hospitals, city councils and others related with government, that is why audit committees has been formed in order to focus on governance in a company or an organization. The Sarbanes-Oxley
The purpose of this paper is to identify the existence of audit committee and the practice of corporate governance in public sector entities. The requirement of audit committee and corporate governance has been increase in the corporate sector and also in public sector but there are small differences in the implementation between this two sector that has been discuss in this study. This study also discuss about the characteristic of audit committee, effectiveness of audit committee, the roles of audit committee and a few past studies about the implementation of audit committee in Malaysia and other country. The result from this review studies found that audit committee and governance has become important tools in public sector since the needs of reliable transparency of financial reporting.
1. INTRODUCTION
The concept of audit committee and corporate governance is not a new concept that has been introduced in accounting. This concept has been practiced by every single company in this world because of audit committees has become increasingly important component in governing the company. It became increasingly recognised as a part of modern control structures and governance practices on both private sector and also public sector. Audit committee is an important element of public accountability and governance process and plays role as key to the integrity in both private and public sector (Vendernest, 2008). This is same with what have been said (Gautier et al 2007), audit committee plays very big roles in every company’s regardless small company or big company audit committees is not only important on business entity but also important to public sector entity, public sector entities include the state and local government, federal agencies, colleges and universities, hospitals, city councils and others related with government, that is why audit committees has been formed in order to focus on governance in a company or an organization. The Sarbanes-Oxley