Exploring the activities of audit committees to effectively discharge their responsibilities: the case of a small to medium-size publicly-listed company. (28th December 2020)

• Record Type: Journal Article
• Authors: Grange, Madeleine La; Ackers, Barry; Odendaal, Elza
• Is Part Of: International journal of business governance and ethics. Volume 15:Number 1(2021)
• Page Start: 38
• Page End: 60
• Publication Date: 2020-12-28
• Subjects: alternative exchange listed company -- alternative exchange -- AltX -- activities -- audit committee -- AC -- corporate governance -- small to medium-sized company -- stakeholders -- value-added; 658.4
• Languages: English
• ISSNs: 1477-9048

Abstract

Independent audit committees (ACs) are one of the corporate governance structures used to enhance accountability. This paper explores the AC activities of a South African high-growth potential, small to medium-sized company. In this regard, it aims to identify the activities used by ACs in the effective discharge of their fiduciary responsibilities, and considers how these activities contribute to the value that the AC adds to the company. These AC activities include its fiduciary role, communicating with the board and stakeholders, the AC charter, the annual AC work plan, formal AC evaluation processes, and AC meeting attendance. The study used a non-probability, purposive sampling strategy to select a specific company to study and for identifying the study participants. Semi-structured interviews conducted with AC members and attendees revealed that the activities of the AC of the selected company added value to the company and its stakeholders.