William S. Turley|Mahbub Zaman
Audit committee effectiveness: informal processes and behavioural effects
University of Manchester|University of Manchester
purpose paper seeks investigate conditions processes affecting operation potential effectiveness audit committees acs particular focus interaction ac individuals financial reporting internal audit functions external auditors designmethodologyapproach case study approach employed based direct engagement participants ac activities including ac chair external auditors internal auditors senior management findings authors find informal networks ac participants condition impact ac significant effects ac governance outcomes occur outside formal structures processes ac pervasive behavioural effects within organization may used threat ally arbiter bringing solutions issues conflicts acs used organizational politics communication processes power plays also affect interpretations events cultural values research limitationsimplications research ac governance processes needed develop better understanding effectiveness longitudinal studies focusing organizational institutional context ac operations examine historical events organization significant changes regulatory environment affect current structures processes originalityvalue case analysis highlights number significant factors fully recognised either theorizing governance role acs development policy regulations concerning acs impinge governance contribution include importance informal processes around ac influence power relations organizational participants relevance historical development governance organization possibility acs impact governance may greatest nonroutine situations