Audit committee formation and audit fees : an Australian study

Schofield, Brooke Elizabeth. (1999). Audit committee formation and audit fees : an Australian study Honours Thesis, School of Business, The University of Queensland.

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Author Schofield, Brooke Elizabeth.
Thesis Title Audit committee formation and audit fees : an Australian study
School, Centre or Institute School of Business
Institution The University of Queensland
Publication date 1999
Thesis type Honours Thesis
Total pages 95
Language eng
Subjects 1501 Accounting, Auditing and Accountability
Formatted abstract
Australia has experienced rapid growth in the level of audit committees formed during the late 1980s and through the 1990s. This study considers the rise of these audit committees and their impact on audit fees, firstly, by examining the prevalence, formation and composition of such committees via an investigative questionnaire sent to major Australian companies; secondly, by considering the impact the formation of such committees has had upon the demand for audit services supplied by the company's external (independent) auditor; and finally, by examination of the impact the composition of the committee has on this demand for external audit services.

An analysis of the responses to the questionnaire provides an indication as to the prevalence, formation dates, size and composition of audit committees in Australia today, whilst the results of the empirical tests indicate that the formation of the audit committee does have a significant impact on the demand for external audit services (as proxied by the size of the audit fee) over the full pre- and post- formation period considered. The research findings of this study have particular relevance for regulatory bodies and advocates of the recommendations requiring mandatory audit committee formation and specific size and composition regulations for all Australian publicly listed companies.

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Created: Wed, 03 Nov 2010, 11:30:59 EST by Muhammad Noman Ali on behalf of The University of Queensland Library