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Board of directors’ independence and modified audit report: an analysis of the Malaysian Environment

The aim of the paper is to examine whether board of directors’ (BODs) independence has an effect on the modified audit report of the non-banking and financial companies listed on Bursa Malaysia. Data is collected from the annual reports of a sample of 300 companies for the period of 2004 to 2009....

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Main Authors: Suhaimi Ishak,, Mohd ‘Atef Md Yusof,
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia 2015
Online Access:http://journalarticle.ukm.my/9519/1/11138-30903-1-PB.pdf
http://journalarticle.ukm.my/9519/
http://ejournal.ukm.my/pengurusan/issue/view/700
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spelling my-ukm.journal.95192016-12-14T06:50:11Z http://journalarticle.ukm.my/9519/ Board of directors’ independence and modified audit report: an analysis of the Malaysian Environment Suhaimi Ishak, Mohd ‘Atef Md Yusof, The aim of the paper is to examine whether board of directors’ (BODs) independence has an effect on the modified audit report of the non-banking and financial companies listed on Bursa Malaysia. Data is collected from the annual reports of a sample of 300 companies for the period of 2004 to 2009. Both descriptive and multivariate analyses were employed to address the research objectives. The results indicate that BODs’ independence is negatively related to acceptance of modified audit report. In addition, a company’s higher debts or leverage may probably increase the acceptance of modified audit report; while for companies with more business segments, the acceptance of modified audit report is less. However, the size of the BODs and return on assets or asset profitability do not influence the issuance of modified audit report by the auditor. The findings provide empirical evidence on the development and importance of BODs’ independence relating to modified audit report. Penerbit Universiti Kebangsaan Malaysia 2015 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/9519/1/11138-30903-1-PB.pdf Suhaimi Ishak, and Mohd ‘Atef Md Yusof, (2015) Board of directors’ independence and modified audit report: an analysis of the Malaysian Environment. Jurnal Pengurusan, 44 . pp. 1-13. ISSN 0127-2713 http://ejournal.ukm.my/pengurusan/issue/view/700
institution Universiti Kebangsaan Malaysia
building Perpustakaan Tun Sri Lanang Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Kebangsaan Malaysia
content_source UKM Journal Article Repository
url_provider http://journalarticle.ukm.my/
language English
description The aim of the paper is to examine whether board of directors’ (BODs) independence has an effect on the modified audit report of the non-banking and financial companies listed on Bursa Malaysia. Data is collected from the annual reports of a sample of 300 companies for the period of 2004 to 2009. Both descriptive and multivariate analyses were employed to address the research objectives. The results indicate that BODs’ independence is negatively related to acceptance of modified audit report. In addition, a company’s higher debts or leverage may probably increase the acceptance of modified audit report; while for companies with more business segments, the acceptance of modified audit report is less. However, the size of the BODs and return on assets or asset profitability do not influence the issuance of modified audit report by the auditor. The findings provide empirical evidence on the development and importance of BODs’ independence relating to modified audit report.
format Article
author Suhaimi Ishak,
Mohd ‘Atef Md Yusof,
spellingShingle Suhaimi Ishak,
Mohd ‘Atef Md Yusof,
Board of directors’ independence and modified audit report: an analysis of the Malaysian Environment
author_facet Suhaimi Ishak,
Mohd ‘Atef Md Yusof,
author_sort Suhaimi Ishak,
title Board of directors’ independence and modified audit report: an analysis of the Malaysian Environment
title_short Board of directors’ independence and modified audit report: an analysis of the Malaysian Environment
title_full Board of directors’ independence and modified audit report: an analysis of the Malaysian Environment
title_fullStr Board of directors’ independence and modified audit report: an analysis of the Malaysian Environment
title_full_unstemmed Board of directors’ independence and modified audit report: an analysis of the Malaysian Environment
title_sort board of directors’ independence and modified audit report: an analysis of the malaysian environment
publisher Penerbit Universiti Kebangsaan Malaysia
publishDate 2015
url http://journalarticle.ukm.my/9519/1/11138-30903-1-PB.pdf
http://journalarticle.ukm.my/9519/
http://ejournal.ukm.my/pengurusan/issue/view/700
_version_ 1643737824747323392
score 13.211869

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