ESTABLISHING THE RELATIONSHIP BETWEEN AN EFFECTIVE AUDIT COMMITTEE AND INFUSION OF A GOOD CONTROL ENVIRONMENT

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Zandile Virtue Dlamini, Emmanuel Mutambara ORCID logo, Akwesi Assensoh-Kodua ORCID logo

https://doi.org/10.22495/cbv13i3art6

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Abstract

Audit Committees are a vital component of accountability and good governance for any serious organisation and have progressively been perceived as an integral part of modern control structures and control practices in both the public and private sectors. However, Audit Committees can only discharge such gigantic responsibilities in a conducive environment to provide its effective performance of certain key functions in the areas of oversight of risk management, reporting, and internal controls. Nonetheless, the enablement of such conducive environments has become a challenge to many Audit Committees. It is against this background that this study investigates the relationship between an effective audit committee and infusion of a good control environment. The study used structured and unstructured questions to investigate population comprising standing committee members and Audit Committee members. Thus this study made use of a mixed methodology to collect quantitative data as well as reviewing audit documents, such as, the Audit Committee Charter and minutes of meetings in order to ascertain the environment under which such august practices are performed. The outcome concludes that the Audit Committee which was selected for the study has the good working environment.

Keywords: Audit Committee, Control Environment, Governance, Local Governments

Received: 10.06.2017

Accepted: 05.11.2017

How to cite this paper: Dlamini, Z. V., Mutambara, E., & Assensoh-Kodua, A. (2017). Establishing the relationship between an effective audit committee and infusion of a good control environment. Corporate Board: role, duties and composition, 13(3), 52-58. https://doi.org/10.22495/cbv13i3art6