Audit Committee Effectiveness, Internal Audit Function and Financial Reporting Lag: Evidence From Malaysia

In complying with the new regulation on shortening the timeframe for the issuance of annual report by all public listed companies in Malaysia, it important to examine whether those companies are able to meet the new requirement. This study examines association between audit committee effectiveness, the arrangement of internalaudit function (IAF) and the financial reporting lag (FRL) among Malaysia’s listed companies. The agency theory are applied to explain the framework of this study and tested on the sample of 597 Malaysian listed companies for the FYE 2015. The results show that audit committee size and the total cost incurred for IAF have significant negative associations with FRL

Keywords:

Audit Committee Effectiveness , Internal Audit Function , Financial Reporting Lag , Malaysia