Pre and Post MCCG 2017: Board Audit Committee Effectiveness and Independence Issues

Abstract

Purpose – This study investigates the impact of the two main issues of the fortification of the Board Audit Committee which includes the effectiveness and independence factors practiced within the Audit Committee compared between the MCCG 2012 and the MCCG 2017 era.

Design/methodology/approach –In order to review the performance of active and distinct Board Audit Committees, purposeful sampling approach is used, accompanied with regression analysis, content analysis, and systematic prior research, which evaluates the Annual Reports, Sustainability Reports and Integrated Reports.

Originality/value – This study is a systematic review of recent research developments in MCCG 2012 and MCCG 2017. The Effective Board Audit Committee and the Independent Board Audit Committee scoring indices designed could also be applied to other PLCs other than the Malaysian oil and gas industry.