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Boundary spanning and gatekeeping roles of UK audit committees

Research output: Contribution to journalJournal article

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Boundary spanning and gatekeeping roles of UK audit committees. / Beattie, Vivien; Fearnley, Stella; Hines, Tony.

In: Accounting and Business Research, Vol. 44, No. 3, 2014, p. 315-343.

Research output: Contribution to journalJournal article

Harvard

Beattie, V, Fearnley, S & Hines, T 2014, 'Boundary spanning and gatekeeping roles of UK audit committees', Accounting and Business Research, vol. 44, no. 3, pp. 315-343. https://doi.org/10.1080/00014788.2014.898434

APA

Beattie, V., Fearnley, S., & Hines, T. (2014). Boundary spanning and gatekeeping roles of UK audit committees. Accounting and Business Research, 44(3), 315-343. https://doi.org/10.1080/00014788.2014.898434

Vancouver

Beattie V, Fearnley S, Hines T. Boundary spanning and gatekeeping roles of UK audit committees. Accounting and Business Research. 2014;44(3):315-343. https://doi.org/10.1080/00014788.2014.898434

Author

Beattie, Vivien ; Fearnley, Stella ; Hines, Tony. / Boundary spanning and gatekeeping roles of UK audit committees. In: Accounting and Business Research. 2014 ; Vol. 44, No. 3. pp. 315-343.

Bibtex

@article{2cc5d846de3242df86e1b89d7d044555,
title = "Boundary spanning and gatekeeping roles of UK audit committees",
abstract = "Post financial crisis, audit committee (AC) reforms are proposed to improve the quality of financial reporting (EC 2011; Competition Commission 2013). This paper{\textquoteright}s empirical contribution is to investigate the extent to which ACs and audit committee chairs (ACCs) engage with chief financial officers (CFOs) and audit partners (APs) across a range of 32 financial reporting issues. It is the first large-scale survey of interactions to move beyond the micro CFO / AP dyad and to distinguish the individual ACC from the AC group. While 37% of the 5,445 reported discussions involve all three key individuals together with the full AC, 35% involve neither the AC nor the ACC and the ACC acts without the full AC in a significant minority of cases. The parties reported to be involved are similar across the three respondent groups but vary with financial reporting issue, company size and audit firm size. The paper{\textquoteright}s theoretical contribution is to interpret the evidence using the concepts of boundary spanning and gatekeeping roles. The research reveals incomplete levels of AC and ACC engagement with financial reporting issues. Findings have implications for policymakers regarding the role, influence and effectiveness of the AC in financial reporting matters. Directions for future research are identified.",
keywords = "auditor-client interaction , audit committee, boundary spanning, corporate governance, discussion, negotiation",
author = "Vivien Beattie and Stella Fearnley and Tony Hines",
year = "2014",
doi = "10.1080/00014788.2014.898434",
language = "English",
volume = "44",
pages = "315--343",
journal = "Accounting and Business Research",
issn = "0001-4788",
publisher = "Routledge",
number = "3",

}

RIS

TY - JOUR

T1 - Boundary spanning and gatekeeping roles of UK audit committees

AU - Beattie, Vivien

AU - Fearnley, Stella

AU - Hines, Tony

PY - 2014

Y1 - 2014

N2 - Post financial crisis, audit committee (AC) reforms are proposed to improve the quality of financial reporting (EC 2011; Competition Commission 2013). This paper’s empirical contribution is to investigate the extent to which ACs and audit committee chairs (ACCs) engage with chief financial officers (CFOs) and audit partners (APs) across a range of 32 financial reporting issues. It is the first large-scale survey of interactions to move beyond the micro CFO / AP dyad and to distinguish the individual ACC from the AC group. While 37% of the 5,445 reported discussions involve all three key individuals together with the full AC, 35% involve neither the AC nor the ACC and the ACC acts without the full AC in a significant minority of cases. The parties reported to be involved are similar across the three respondent groups but vary with financial reporting issue, company size and audit firm size. The paper’s theoretical contribution is to interpret the evidence using the concepts of boundary spanning and gatekeeping roles. The research reveals incomplete levels of AC and ACC engagement with financial reporting issues. Findings have implications for policymakers regarding the role, influence and effectiveness of the AC in financial reporting matters. Directions for future research are identified.

AB - Post financial crisis, audit committee (AC) reforms are proposed to improve the quality of financial reporting (EC 2011; Competition Commission 2013). This paper’s empirical contribution is to investigate the extent to which ACs and audit committee chairs (ACCs) engage with chief financial officers (CFOs) and audit partners (APs) across a range of 32 financial reporting issues. It is the first large-scale survey of interactions to move beyond the micro CFO / AP dyad and to distinguish the individual ACC from the AC group. While 37% of the 5,445 reported discussions involve all three key individuals together with the full AC, 35% involve neither the AC nor the ACC and the ACC acts without the full AC in a significant minority of cases. The parties reported to be involved are similar across the three respondent groups but vary with financial reporting issue, company size and audit firm size. The paper’s theoretical contribution is to interpret the evidence using the concepts of boundary spanning and gatekeeping roles. The research reveals incomplete levels of AC and ACC engagement with financial reporting issues. Findings have implications for policymakers regarding the role, influence and effectiveness of the AC in financial reporting matters. Directions for future research are identified.

KW - auditor-client interaction

KW - audit committee

KW - boundary spanning

KW - corporate governance

KW - discussion

KW - negotiation

U2 - 10.1080/00014788.2014.898434

DO - 10.1080/00014788.2014.898434

M3 - Journal article

VL - 44

SP - 315

EP - 343

JO - Accounting and Business Research

JF - Accounting and Business Research

SN - 0001-4788

IS - 3

ER -