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Organisations Overseeing through the Audit Committee

Author

Listed:
  • Emilia VASILE

    (“Athenaeum” University of Bucharest)

  • Ion CROITORU

    (“Athenaeum” University of Bucharest)

Abstract
The article addresses the main responsibilities of audit committees within organizations, starting from the need for knowledge and understanding of the organization by all members of the audit committee, which must consider both internal factors and external factors. Among internal factors, the organization's internal control system is one of the key elements in the financial reporting process, the concern of maintaining an appropriate control environment. Audit committee members should ensure that management gives the organization a "bon ton", "leading tone", developing an organizational culture that promotes the attitude of compliance and internal control findings and conclusions which help to provide default quality of financial reporting. Good practice issues of Anglo-Saxon and internal control assessment tools for organizations are presented further. Particular attention is paid to risk management and specifically the risk of fraud by the media appetite for such issues can easily affect the organization's brand. The second part of the article discusses the influences of financial failures of recent decades on corporate governance system of organizations in the Anglo-Saxon environment. Particular attention is paid to how the audit committees, these "living consciences" of organizations have adapted their roles and behavior to capture, monitor and influence the overall management culture of organizations.

Suggested Citation

  • Emilia VASILE & Ion CROITORU, 2016. "Organisations Overseeing through the Audit Committee," Hyperion Economic Journal, Faculty of Economic Sciences, Hyperion University of Bucharest, Romania, vol. 4(2), pages 3-10, June.
    • Handle: RePEc:hyp:journl:v:4:y:2016:i:2:p:3-10
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    File URL: https://hej.hyperion.ro/articles/2(4)_2016/HEJ%20nr2(4)_2016_A1Vasile.pdf
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    References listed on IDEAS

    as
    1. Thomas Gstraunthaler & János Lukács & Marcel Steller, 2008. "The Board of Directors and its Role in the Corporate Governance System - Considerations about the Control Model - A Research Note," International Journal of Business and Economic Sciences Applied Research (IJBESAR), Democritus University of Thrace (DUTH), Kavala Campus, Greece, vol. 1(1), pages 37-54, April.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    management; organization; fraud; internal auditors; internal control; external auditors; audit committee;
    All these keywords.

    JEL classification:

    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing
    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation
    • M49 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Other

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