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...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Accounting Research Institute (ARI) & Faculty of Accountancy
2015
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| Online Access: | https://ir.uitm.edu.my/id/eprint/14347/ |
| _version_ | 1848803458250964992 |
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| 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 |
| building | UiTM Institutional Repository |
| collection | Online Access |
| 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. |
| first_indexed | 2025-11-14T21:39:34Z |
| format | Article |
| id | uitm-14347 |
| institution | Universiti Teknologi MARA |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T21:39:34Z |
| publishDate | 2015 |
| publisher | Accounting Research Institute (ARI) & Faculty of Accountancy |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | uitm-143472017-04-11T03:02:40Z https://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 mar 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 https://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. (2015) Malaysian Accounting Review <https://ir.uitm.edu.my/view/publication/Malaysian_Accounting_Review.html>, 14 (1). pp. 66-80. ISSN 1675-4077 http://arionline.uitm.edu.my/ojs/index.php/MAR/article/view/349 |
| 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 |
| 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_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_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_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 |
| topic | Balance sheet. Financial statements. Corporation reports. Including pro forma statements Malaysia |
| url | https://ir.uitm.edu.my/id/eprint/14347/ https://ir.uitm.edu.my/id/eprint/14347/ |