A study of the audit committees' functioning in Bahrain: Empirical findings

Abstract

Audit committees (ACs) are a powerful tool in effective corporate governance. This study examines the functioning of ACs in Bahrain from the responses of 30 companies listed on the Bahrain stock exchange. Data were collected from questionnaires from companies and the audit firms. The study primarily focuses on the extent to which companies in Bahrain have been following the standard recommendations and guidelines provided by the blue ribbon committee (BRC). Size, type of auditors and industry type influence the establishment of ACs in Bahrain. The establishment of ACs have been slow yet, most of the companies have been following by and large BRC's recommendations. However, the concept of independent ACs is yet to be popularized in Bahrain. ACs do not report their findings to shareholders, but other functions seem to accord with the BRC's recommendations. However, some perceptions of audit firms negate the claims of the companies to comply with BRC recommendations.

Citation

Joshi, P.L. and Wakil, A. (2004), "A study of the audit committees' functioning in Bahrain: Empirical findings", Managerial Auditing Journal, Vol. 19 No. 7, pp. 832-858. https://doi.org/10.1108/02686900410549394