AN INVESTIGATION INTO THE EFFECTIVENESS OF AUDIT COMMITTEES

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Zandile Virtue Dlamini, Emmanuel Mutambara, Akwesi Assensoh-Kodua

DOI:10.22495/cbv13i2art5

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Abstract

The fundamental purpose of this study was to investigate the effectiveness of audit committees in the eThekwini municipality within the province of KwaZulu Natal. The target population for the study was all the standing and audit committee members totalling 20, thus taking a census-based approach. The descriptive sections adopted a positivist paradigm employing quantitative methodology was used to examine information through techniques that revealed patterns, trends and relationships. Hence, a mixed methodology was the case in this study. The study revealed that the eThekwini audit committee was generally effective in discharging its oversight role in the council, though there were areas of concern, which include control frameworks and financial management to improve corporate governance. The study revealed that there was, to a large extent compliance with legal requirements regarding audit committees, as well as best practice processes. It is therefore important to point out that, this study outlines good practices of audit committees that are worthy of emulation and further improvement by the research community as a framework for good governance in local governments.

Keywords: Audit Committee, Control Frameworks, Governance, Financial Management, Local Governments

Received: 10.06.2017

Accepted: 19.08.2017

How to cite this paper: Dlamini, Z. V., Mutambara, E., & Assensoh-Kodua, A. (2017). An investigation into the effectiveness of audit committees. Corporate Board: role, duties and composition, 13(2), 46-54. http://doi.org/10.22495/cbv13i2art5