Accounting Body Membership of Audit Committee Member and Fraudulent Financial Reporting

Abstract

Fraudulent financial reporting is a global phenomenon which has attracted attention of the business and financial community, regulatory bodies and the public. It is harmful in many ways. As a result, various mechanisms have been introduced to mitigate the occurrence of fraudulent financial reporting. One of them is the establishment of audit committee in an organization. Such a committee should possess certain characteristics in order for it to function effectively. From previous studies, it is apparent that not many empirical researches have been conducted pertaining the relationship of accounting body membership of audit committee member and fraudulent financial reporting. Hence, the purpose of this study is to examine the relationship between accounting body membership of audit committee member and the occurrence of fraudulent financial reporting.