Audit Committees Wield Significant Influence Over Internal Audit Budgets in Malaysia
Audit committees in Malaysian companies play a crucial role in overseeing financial reporting and internal control. A study looked at how audit committee characteristics affect the internal audit budget. The research found that the frequency of audit committee meetings and the audit committee index positively impact the internal audit budget. However, longer audit committee tenure has a negative effect on the internal audit budget. These findings suggest the importance of having skilled and committed members on the audit committee to ensure effective monitoring of internal audit functions.