Audit Committees' Informal Interactions Boost Governance Effectiveness
The article explores how informal talks between audit committees and internal audit teams play a vital role in corporate governance. By surveying chief audit executives across different UK companies, it was found that these informal chats happen alongside formal meetings and help audit committees keep an eye on internal audits. The study revealed that informal interactions were influenced by the independence of the audit committee, the experience of the audit chair, and the quality of internal audits. It is also the first study to show how the background of the audit committee chair impacts the efficiency of governance processes, highlighting the significant role informal conversations play in ensuring good corporate governance.