Audit committee of cooperatives in Malaysia: level of competency / Yusri Huzaimi Mat Jusoh and Noor Marini Abdullah

Mat Jusoh, Yusri Huzaimi and Abdullah, Noor Marini (2018) Audit committee of cooperatives in Malaysia: level of competency / Yusri Huzaimi Mat Jusoh and Noor Marini Abdullah. e-Academia Journal, 8. pp. 217-223. ISSN 2289 - 6589


This study investigated the level of competency amongst audit committees (ACs) of Malaysian cooperatives (coops). AC competency (with proxies of educational background and accounting knowledge) has emerged as a significant theme in corporate governance debates. AC that possesses accounting knowledge is associated with effective monitoring. As such, this study employed 384 AC members as respondents representing large-, medium-, and small-sized coops. As a result, this study revealed that only 12.7 % of ACs held first degree, while almost half of them only possessed secondary level of education. In terms of accounting knowledge, only 10.1 % of the AC members possessed professional knowledge related to the abilities of analysing and issuing opinions on financial reporting, as well as providing added value to coops. Besides, only 5.2 % of the ACs fell under the technical level, which is associated with the ability to prepare and to understand financial reports, but not to the extent of analysing them. Meanwhile, 29.7% of the AC members had intermediate knowledge linked with the capability of preparing reports in accordance to specific format without the ability to comprehend them. Surprisingly, 23.4 % of the AC members were novice, hence lacked knowledge in accounting.


Item Type: Article
Email / ID Num.
Mat Jusoh, Yusri Huzaimi
Abdullah, Noor Marini
Subjects: H Social Sciences > HJ Public Finance > Public accounting. Auditing
Divisions: Universiti Teknologi MARA, Terengganu > Dungun Campus
Journal or Publication Title: e-Academia Journal
UiTM Journal Collections: UiTM Journal > e-Academia Journal (e-AJ)
ISSN: 2289 - 6589
Volume: 8
Page Range: pp. 217-223
Keywords: Audit Committee, Education, Accounting Knowledge, Cooperatives
Date: 2018
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