Audit committee efficiency and internal audit unit determination of companies listed on the Stock Exchange of Thailand
Keywords:
Effectiveness, audit committee, internal audit unit determinationAbstract
PORPOSES: To study and analyze the effect of financial risk factors on the effectiveness of the audit committee, the effectiveness of the audit committee on the determination of the internal audit unit, and the effect of financial risk on the determination of the internal audit unit through the effectiveness of the audit committee. METHODS: A quantitative research, the sample group being a specific selection of companies listed on the Stock Exchange of Thailand in the MAI group between 2018 and 2020, excluding companies with incomplete data and companies in the financial industry group. RESULTS: Financial risk was negatively related to the effectiveness of the audit committee, and the effectiveness of the audit committee was negatively related to the determination of the internal audit unit with statistical significance at p<0.01. THEORY/POLICY IMPLICATIONS: The study supports agency theory and expand the body of knowledge on internal audit of public companies, especially the audit committee.
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