Factors That Influence the Audit Committee's Effectiveness In Malaysia Listed Companies

In this paper, the aims is to describe the effectiveness of audit committee, and also to identify the importance of audit committee required by Malaysian Code on Corporate Governance (MCCG). The objective of the research reports is to examine the impact of three selected independent variables (audit committee's experience and expertise, role of audit committee, and size of audit committee) on the audit committee's effectiveness. Thorough the research, questionnaires were distributed to 50 listed companies in Bursa Malaysia. Along these lines, just 100 arrangements of polls are utilized for information investigation because of exceptions and incompletes of study. The information gathered from respondents were broke down by applying in the Pearson Correlation and Multiple Regression Analysis. The discoveries demonstrated that all the three autonomous factors have critical association with ward variable. This study showed a positive result for all three independent variables, so which is mean that the importance of audit committee's existence in relation to the credibility and transparency of financial statement. Nevertheless, further investigation and research on factors that may influence the audit committee's effectiveness should be conducted other than the audit committee's experience and expertise, role of audit committee and size of audit committee.