Audit committee effectiveness, internal audit function and sustainability reporting practices
Purpose – The purpose of this study is to examine the association between audit committee effectiveness (ACE), internal audit function (IAF) and sustainability reporting practices. Design/methodology/approach – Using a cross-sectional and correlational design, useable questionnaires were received fr...
| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
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Emerald Publishing
2022-05-01
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| Series: | AJAR (Asian Journal of Accounting Research) |
| Subjects: | |
| Online Access: | https://www.emerald.com/insight/content/doi/10.1108/AJAR-03-2021-0036/full/pdf |
| _version_ | 1797792263447773184 |
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| author | Zainabu Tumwebaze Juma Bananuka Twaha Kigongo Kaawaase Caroline Tirisa Bonareri Fred Mutesasira |
| author_facet | Zainabu Tumwebaze Juma Bananuka Twaha Kigongo Kaawaase Caroline Tirisa Bonareri Fred Mutesasira |
| author_sort | Zainabu Tumwebaze |
| collection | DOAJ |
| description | Purpose – The purpose of this study is to examine the association between audit committee effectiveness (ACE), internal audit function (IAF) and sustainability reporting practices. Design/methodology/approach – Using a cross-sectional and correlational design, useable questionnaires were received from 48 financial services firms in Uganda. The data were analyzed using Statistical Package for Social Sciences. Findings – results indicate that ACE and IAF are positively and significantly associated with sustainability reporting practices. ACE and IAF are more significantly associated with economic and social indicators than environmental sustainability indicators. Research limitations/implications – In terms of practice, it is no longer a matter of having internal auditors and audit committees in place but rather those who are mindful of the welfare of society and the natural environment. The effectiveness of the board audit committee and a functioning internal audit can be assessed in terms of their recommendations and decisions regarding improvements in the welfare of society and the natural environment in addition to the traditionally known performance benchmarks. Practical implications – The study focuses on only financial services firms in Uganda, and this is a small sample. Future studies may focus on larger samples to enable comparison of the results. Originality/value – This study provides insights on the initial understanding of the association between ACE, IAF and sustainability reporting practices using evidence from a developing African country – Uganda. |
| first_indexed | 2024-03-13T02:30:41Z |
| format | Article |
| id | doaj.art-f9500d848985460dac4bb69b125b3daa |
| institution | Directory Open Access Journal |
| issn | 2443-4175 |
| language | English |
| last_indexed | 2024-03-13T02:30:41Z |
| publishDate | 2022-05-01 |
| publisher | Emerald Publishing |
| record_format | Article |
| series | AJAR (Asian Journal of Accounting Research) |
| spelling | doaj.art-f9500d848985460dac4bb69b125b3daa2023-06-29T19:18:38ZengEmerald PublishingAJAR (Asian Journal of Accounting Research)2443-41752022-05-017216318110.1108/AJAR-03-2021-0036Audit committee effectiveness, internal audit function and sustainability reporting practicesZainabu Tumwebaze0Juma Bananuka1Twaha Kigongo Kaawaase2Caroline Tirisa Bonareri3Fred Mutesasira4Department of Accounting, Makerere University Business School, Makerere University, Kampala, UgandaDepartment of Accounting, Makerere University Business School, Makerere University, Kampala, UgandaDepartment of Accounting, Makerere University Business School, Makerere University, Kampala, UgandaDepartment of Accounting, Makerere University Business School, Makerere University, Kampala, UgandaDepartment of Accounting, Makerere University Business School, Makerere University, Kampala, UgandaPurpose – The purpose of this study is to examine the association between audit committee effectiveness (ACE), internal audit function (IAF) and sustainability reporting practices. Design/methodology/approach – Using a cross-sectional and correlational design, useable questionnaires were received from 48 financial services firms in Uganda. The data were analyzed using Statistical Package for Social Sciences. Findings – results indicate that ACE and IAF are positively and significantly associated with sustainability reporting practices. ACE and IAF are more significantly associated with economic and social indicators than environmental sustainability indicators. Research limitations/implications – In terms of practice, it is no longer a matter of having internal auditors and audit committees in place but rather those who are mindful of the welfare of society and the natural environment. The effectiveness of the board audit committee and a functioning internal audit can be assessed in terms of their recommendations and decisions regarding improvements in the welfare of society and the natural environment in addition to the traditionally known performance benchmarks. Practical implications – The study focuses on only financial services firms in Uganda, and this is a small sample. Future studies may focus on larger samples to enable comparison of the results. Originality/value – This study provides insights on the initial understanding of the association between ACE, IAF and sustainability reporting practices using evidence from a developing African country – Uganda.https://www.emerald.com/insight/content/doi/10.1108/AJAR-03-2021-0036/full/pdfSustainability reporting practicesAudit committee effectivenessInternal audit functionLegitimacy theoryAgency theoryUganda |
| spellingShingle | Zainabu Tumwebaze Juma Bananuka Twaha Kigongo Kaawaase Caroline Tirisa Bonareri Fred Mutesasira Audit committee effectiveness, internal audit function and sustainability reporting practices AJAR (Asian Journal of Accounting Research) Sustainability reporting practices Audit committee effectiveness Internal audit function Legitimacy theory Agency theory Uganda |
| title | Audit committee effectiveness, internal audit function and sustainability reporting practices |
| title_full | Audit committee effectiveness, internal audit function and sustainability reporting practices |
| title_fullStr | Audit committee effectiveness, internal audit function and sustainability reporting practices |
| title_full_unstemmed | Audit committee effectiveness, internal audit function and sustainability reporting practices |
| title_short | Audit committee effectiveness, internal audit function and sustainability reporting practices |
| title_sort | audit committee effectiveness internal audit function and sustainability reporting practices |
| topic | Sustainability reporting practices Audit committee effectiveness Internal audit function Legitimacy theory Agency theory Uganda |
| url | https://www.emerald.com/insight/content/doi/10.1108/AJAR-03-2021-0036/full/pdf |
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