Audit Committees and Corporate Governance in Public Sector - Article Review Dissertation

ABSTRACT

The objective of this paper is to recognize the existence of taxation committee and the practice of corporate governance in public sector entities. The requirement of audit committee and corporate governance has been increase in the corporate sector and also in public sector yet there are small differences in the implementation between this two sector which was discuss with this study. This kind of study likewise discuss regarding the characteristic of taxation committee, success of audit committee, the roles of audit committee and a few earlier studies about the setup of review committee in Malaysia and also other country. The result from this assessment studies found that examine committee and governance is becoming important tools in public sector since the requirements of trustworthy transparency of economic reporting. 1 . INTRODUCTION

The concept of review committee and company governance is not a new concept which has been introduced in accounting. This concept has been applied by every single company on this planet because of examine committees is now increasingly essential component in governing the company. It became progressively recognised as part of modern control structures and governance techniques on the two private sector and also open public sector. Review committee is a crucial element of public accountability and governance procedure and plays role because key to the integrity in both private and community sector (Vendernest, 2008). This is certainly same with what have been stated (Gautier ou al 2007), audit committee plays very big roles in every company's regardless business or big company review committees isn't just important in business entity but also important to public sector entity, public sector entities are the state and local government, federal agencies, universities and colleges, hospitals, city councils and others related with authorities, that is why examine committees continues to be formed in order to focus on governance in a organization or a company. The Sarbanes-Oxley Act express the important of audit committees since the situations of Enron and WorldCom happened inside the recent years. The audit committees are important as one of the tools to detect scam. Therefore , audit committees needs to be established in an organisation. Public sector entities also need to have governance likewise as in other corporate sector, the impacts of dishonest behaviour in corporate sector will influences the investors while the underhanded behaviour in public sector could have the affects on duty payers and citizens. (George. N, 2005) Besides, the existence of audit committees can help to raise the integrity and efficiency of audit procedure, the internal control and the economic reporting in public places sector. A highly designed examine committees will need to facilitate the governance system's performance of its oversight role, thereby reducing, instead of increasing burden. Therefore , every governments, irrespective of size or perhaps circumstances, must have an taxation committee. (Gautier& Stephen J, 2007) In 1992, the Cadbury record on corporate and business governance suggested the establishment of an review committee as an important characteristic within the code of greatest practice to get corporate governance.

2 . DEFINITION

The term review committees can be explained as an working committee of a company's board of owners that is in charge of overseeing financial reporting and disclosure. Committee members has to be made up of self-employed outside directors, including a minimum of one person who have qualifies like a financial expert. Audit committees typically have the authority to initiate unique investigations in instances where they determine accounting techniques are troublesome or believe, or exactly where problems can be found with employees. The taxation committee's role includes the oversight of financial reporting, the monitoring of accounting policies, the oversight of any kind of external auditors, regulatory compliance, plus the discussion of risk management policies with management. 3. DISCUSSION

a few. 1The roles...

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