International Journal of Social Science & Economic Research
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Title:
AUDIT COMMITTEE CHARACTERISTICS AND INVESTMENT IN INTERNAL AUDIT FUNCTION: EVIDENCE FROM MALAYSIA LISTED COMPANIES

Authors:
Muqaddam Oyetunji Ali and Wuri Handayani

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Muqaddam Oyetunji Ali and Wuri Handayani
School of Business Innovation and Technopreneurship, University Malaysia Perlis, Perlis, Malaysia

MLA 8
Ali, Muqaddam O., and Wuri Handayani. "AUDIT COMMITTEE CHARACTERISTICS AND INVESTMENT IN INTERNAL AUDIT FUNCTION: EVIDENCE FROM MALAYSIA LISTED COMPANIES." Int. j. of Social Science and Economic Research, vol. 3, no. 2, Feb. 2018, pp. 618-629, ijsser.org/more2018.php?id=43. Accessed 2018.
APA
Ali, M. O., & Handayani, W. (2018, February). AUDIT COMMITTEE CHARACTERISTICS AND INVESTMENT IN INTERNAL AUDIT FUNCTION: EVIDENCE FROM MALAYSIA LISTED COMPANIES. Int. j. of Social Science and Economic Research, 3(2), 618-629. Retrieved from ijsser.org/more2018.php?id=43
Chicago
Ali, Muqaddam O., and Wuri Handayani. "AUDIT COMMITTEE CHARACTERISTICS AND INVESTMENT IN INTERNAL AUDIT FUNCTION: EVIDENCE FROM MALAYSIA LISTED COMPANIES." Int. j. of Social Science and Economic Research3, no. 2 (February 2018), 618-629. Accessed , 2018. ijsser.org/more2018.php?id=43.

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Abstract:
As one of the corporate governance mechanisms, audit committee is viewed as an essential selfregulatory internal governance instrument and is expected to provide an overseeing role over the entire process of financial reporting, particularly the working of the internal control system and the work of the auditors. However, there is limitation on the relationship between the audit committee characteristics and the level of investment in internal audit function. This study examines the relationship between audit committee characteristics and investment in internal audit function. The current study used a sample of top 100 listed companies in Bursa Malaysia based on 2017 market capitalisation. Data were collected from the annual report of the listed companies for a period of three years (2014 - 2016). Using Stata software, multiple regression analyses was used to test the hypotheses. The results indicate that, there is a significant relationship between audit committee characteristics (independence, tenure and size) and investment in internal audit function.

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