This study aims to deepen the knowledge of the role played by audit committees as one of the mechanisms governance , in the activation of internal and external audit , and assessing and managing the risks, and the impact on the reduction of financial corruption.
The relationship between the variables of research can be visualized through the following figure:
The importance of research in the following points:
• The current studies is interested in activating of the audit committees mechanism as one of the governance tools in business environment, because of its positive effects on the creation of strong accounting outputs, and thus adds value to businesses international and improves the performance efficiency and reduce financial corruption.
• This research provides a field guide in the Saudi environment for the role of audit committees in activating the mechanisms of governance to reduce the financial corruption in companies and financial institutions.
• This research copes with recent developments and trends in accounting thought, at the local and international level, the research topic attracted the attention of researchers and international organizations to reduce the phenomenon of financial corruption.
The study uses a questionnaire to elicit opinions of a sample of heads and members of audit committees of Saudi banks and auditors who are working in auditing firms
The plan of this research is in six parts, as follows: -
First part: general framework of the research.
Second part: theoretical study of the research.
Third part: audit Committees in the Kingdom of Saudi Arabia.
Fourth part: audit Committees and the face of financial corruption.
Fifth part: The field study in the Kingdom of Saudi Arabia.
Sixth part: results, recommendations and proposed future researches.
After viewing the general framework of research, the second part discussed the previous studies that related to the research which can be divided into the following categories:
1. First, studies that discussed the properties and elements of audit committees.
2. Second, studies that discussed the control role of audit committees.
3. Third, studies that addressed the role of audit committees in corporate governance and financial corruption.
While, the third part discussed the audit committees in the kingdom of Saudi Arabia, in this part the researcher discussed the emergence of audit committees in KSA, its concepts, importance, the ingredients, and the necessary privileges to activate it for performing its duties and responsibilities.
The fourth Part discussed the role of Audit Committees in eliminate or reduce the financial corruption through the following points:
First, the concept of financial and administrative corruption.
Second, causes of corruption and its effects.
Third, the forms of administrative and financial corruption.
Fourth, the activation of audit committees to reduce the financial corruption.
The fifth part dealt with the field study in Saudi environment, as follows, The field study method , determining the study sample, viewing and analysis the results of the questionnaire and test hypotheses, using a combination of various statistical methods.
The sixth Part viewed the results, recommendations and future research; the most important results of the study were the following:
1- The study provides evidence that the audit committees have an important role yet to improve the effectiveness of internal control systems, and cornerstone to strengthening the independence of internal and external auditors, and to improve the quality of financial reporting, and enhance confidence in published financial statements.
2- The study confirmed that there are no statistically significant differences between the opinions of the members of the study sample, about the role of audit committees as one of the mechanisms of governance in the reduction of financial corruption.
3- The study showed that the establishment of audit committees to implement its tasks and responsibilities will lead to a reduction in cases of fraud, manipulation, financial and administrative corruption, illegal acts, and cases of errors and irregularities in companies and financial institutions.
4- The study provides evidence that the commitment of Saudi banks to apply the new rules of audit committees, which will reflect positively on activating the control and governance mechanisms, and thus reduce the financial corruption in businesses and banks.
5- The study confirmed that the audit committees have an important and effective role in overseeing the financial reporting, and the commitment of banks and companies with the laws and regulations applicable in the Kingdom.
The recommendations of this study are:
1- The Saudi companies and banks should design their training systems to enhance capacities of members of audit committees in financial, accounting , technical and behavioral in a way that supports and confirm the responsibilities and duties .
2- The need to improve and develop a control channel between internal and external auditors and the corporation's Board with audit committees for the detection of cases of financial and administrative corruption .
3- The professional bodies and institutions in the Kingdom should holding seminars and scientific conferences to deepen awareness culture of the importance the role of audit committees in the reduction of financial and administrative corruption.
The researcher believes the importance of the following future research:
The impact of the integration among the governance mechanisms on the competitiveness of the businesses in Saudi Environment.
Influential relationship between the effectiveness of audit committees and the quality of published financial reporting - a comparative study.
|
