Politically connected firms and external audit fees in Malaysia: An internal audit function perspective / Norziaton Ismail Khan, S. Susela Devi and Chan Wai Meng

Politically connected firms and external audit fees in Malaysia: An internal audit function perspective / Norziaton Ismail Khan, S. Susela Devi and Chan Wai Meng

This study extends the literature on the role of internal audit function in corporate governance and auditing by testing two hypotheses. The first hypothesis predicts that the association between internal audit objectivity and external audit fees is stronger after the implementation of the Bursa Ma...

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Main Authors: Ismail Khan, Norziaton, S., Susela Devi, Chan, Wai Meng
Format: Article
Language:English
Published: Accounting Research Institute (ARI) & Faculty of Accountancy 2015
Subjects:
Balance sheet. Financial statements. Corporation reports. Including pro forma statements
Malaysia
Online Access:http://ir.uitm.edu.my/id/eprint/14347/
http://ir.uitm.edu.my/id/eprint/14347/
http://ir.uitm.edu.my/id/eprint/14347/1/AJ_NORZIATUN%20ISMAIL%20KHAN%20MAR%2015.pdf
id uitm-14347
recordtype eprints
spelling uitm-143472017-04-11T03:02:40Z http://ir.uitm.edu.my/id/eprint/14347/ Politically connected firms and external audit fees in Malaysia: An internal audit function perspective / Norziaton Ismail Khan, S. Susela Devi and Chan Wai Meng Ismail Khan, Norziaton S., Susela Devi Chan, Wai Meng Balance sheet. Financial statements. Corporation reports. Including pro forma statements Malaysia This study extends the literature on the role of internal audit function in corporate governance and auditing by testing two hypotheses. The first hypothesis predicts that the association between internal audit objectivity and external audit fees is stronger after the implementation of the Bursa Malaysia Listing Requirements 2008 implementation for politically connected firms than for non-politically connected firms. The second hypothesis predicts that the association between internal audit work performance and external audit fees is stronger after the implementation of the Bursa Malaysia Listing Requirements 2008 for politically connected firms than for non-politically connected firms. Using data from 945 firm-year observations for the years 2005 to 2009, internal audit function attributes, namely y objectivity and work performance, and external audit fees are stronger post-2008. This finding suggests that politically connected firms are more likely to use a greater level of internal audit function and are more willing to pay for a higher quality of external audit work, thus acquiring higher external audit fees. Accounting Research Institute (ARI) & Faculty of Accountancy 2015 Article PeerReviewed text en http://ir.uitm.edu.my/id/eprint/14347/1/AJ_NORZIATUN%20ISMAIL%20KHAN%20MAR%2015.pdf Ismail Khan, Norziaton and S., Susela Devi and Chan, Wai Meng (2015) Politically connected firms and external audit fees in Malaysia: An internal audit function perspective / Norziaton Ismail Khan, S. Susela Devi and Chan Wai Meng. Malaysian Accounting Review, 14 (1). pp. 66-80. ISSN 1675-4077 http://arionline.uitm.edu.my/ojs/index.php/MAR/article/view/349
repository_type Digital Repository
institution_category Local University
institution Universiti Teknologi MARA
building UiTM Institutional Repository
collection Online Access
language English
topic Balance sheet. Financial statements. Corporation reports. Including pro forma statements
Malaysia
spellingShingle Balance sheet. Financial statements. Corporation reports. Including pro forma statements
Malaysia
Ismail Khan, Norziaton
S., Susela Devi
Chan, Wai Meng
Politically connected firms and external audit fees in Malaysia: An internal audit function perspective / Norziaton Ismail Khan, S. Susela Devi and Chan Wai Meng
description This study extends the literature on the role of internal audit function in corporate governance and auditing by testing two hypotheses. The first hypothesis predicts that the association between internal audit objectivity and external audit fees is stronger after the implementation of the Bursa Malaysia Listing Requirements 2008 implementation for politically connected firms than for non-politically connected firms. The second hypothesis predicts that the association between internal audit work performance and external audit fees is stronger after the implementation of the Bursa Malaysia Listing Requirements 2008 for politically connected firms than for non-politically connected firms. Using data from 945 firm-year observations for the years 2005 to 2009, internal audit function attributes, namely y objectivity and work performance, and external audit fees are stronger post-2008. This finding suggests that politically connected firms are more likely to use a greater level of internal audit function and are more willing to pay for a higher quality of external audit work, thus acquiring higher external audit fees.
format Article
author Ismail Khan, Norziaton
S., Susela Devi
Chan, Wai Meng
author_facet Ismail Khan, Norziaton
S., Susela Devi
Chan, Wai Meng
author_sort Ismail Khan, Norziaton
title Politically connected firms and external audit fees in Malaysia: An internal audit function perspective / Norziaton Ismail Khan, S. Susela Devi and Chan Wai Meng
title_short Politically connected firms and external audit fees in Malaysia: An internal audit function perspective / Norziaton Ismail Khan, S. Susela Devi and Chan Wai Meng
title_full Politically connected firms and external audit fees in Malaysia: An internal audit function perspective / Norziaton Ismail Khan, S. Susela Devi and Chan Wai Meng
title_fullStr Politically connected firms and external audit fees in Malaysia: An internal audit function perspective / Norziaton Ismail Khan, S. Susela Devi and Chan Wai Meng
title_full_unstemmed Politically connected firms and external audit fees in Malaysia: An internal audit function perspective / Norziaton Ismail Khan, S. Susela Devi and Chan Wai Meng
title_sort politically connected firms and external audit fees in malaysia: an internal audit function perspective / norziaton ismail khan, s. susela devi and chan wai meng
publisher Accounting Research Institute (ARI) & Faculty of Accountancy
publishDate 2015
url http://ir.uitm.edu.my/id/eprint/14347/
http://ir.uitm.edu.my/id/eprint/14347/
http://ir.uitm.edu.my/id/eprint/14347/1/AJ_NORZIATUN%20ISMAIL%20KHAN%20MAR%2015.pdf
first_indexed 2023-09-18T22:51:25Z
last_indexed 2023-09-18T22:51:25Z
_version_ 1777417569300381696

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