Procedural Approach To Develop A Mechanism of Actions of Audit Committees in The Egyptian Business Environment A Field Study
Dr. Magdy Melegy Abdulhakim Melegy Lecturer, Department of Accounting Faculty of Commerce, Benha University
Dr. Nasr Taha Hassan Lecturer, Department of Accounting Faculty of Commerce, Benha University
Abstract :
This study aims to show the mechanism of actions of audit committees as it appears in the modern accounting professional reports, and assess the position of the Egyptian business environment from such a mechanism. The survey wasusedto obtain the perceptions of a sample represent the widest possible range of constituencies involved in the work of audit committees in the Egyptian business environment (members of audit committees, auditors and academics) to assess the appropriateness of such a mechanism. The results of the study have indicated to accept of the mechanism, as respondents stated that all activities and procedures is considered suitable for the Egyptian business environment. The results showed that the comprehensive review of audit firm each time period (e.g. Five years) is considered more appropriate to maintain the independence of the auditor than other suggestion in this area (mandatory rotation and mandatory tendering). Therefore, it is recommended that standard setter authorities in the Egyptian environment to analyze this suggestion and make some modifications in governance rules. In addition, the comprehensive review of audit firm can be considered as a registration requirement in the Egyptian Stock Exchange. The results of the study are consistent with the interpretation of the agency theory of the role of corporate governance mechanisms and particularly audit committees. The importance of the study can be reflected in terms of it offers a set of proposals that could be helpful to various parties associated with the various aspects of auditing profession in Egypt, as well as it is transmitted intellectual debate going on about the work of audit committees and the quality of the audit process to the business environment in Egypt. In addition, it offers a practical proposals and clear procedures that can help members of Audit Committees in the performance of their work.
Key Words: A Mechanism of Actions of Audit Committees, Audit Quality, The Comprehensive Review of Audit Firm , The Egyptian Business Environment |
