Publications

Abstract : The results of financial reporting have always been an issue of interest due to its importance in the economic decision-making process and as a means of communication between companies and stakeholders. According to Razman and Iskandar (2003), there is still lack of empirical evidence regarding the effectiveness of audit committees in Malaysia although their formation is mandatory. Song and Windram (2004) have indicated that the characteristics of audit committees can contribute to their effectiveness in ensuring the compliance of a company's financial reporting with the regulatory requirements and auditing standards. The presence of an audit committee alone does not assure that the committee will perform its duties as expected but it raises questions on the audit committees' ability in discharging their duties, especially in reviewing the accuracy of financial accounts produced by the company. This study attempts to examine the occurrence of variations between profit after tax and minority interest (PATMI) in unaudited and audited accounts in Malaysian companies. Further, the relationship between audit committee characteristics and the company producing an inaccurate unaudited account has also been explored.