Research

AHMAD FAHMI SHEIKH HASSAN · ADI FAZULI MAMAT · YUSUF KARBHARI · MUSLIM HAR SANI MOHAMAD ·International Journal of Economics and Management ·2018 ·JEL: M42; M41;G34

This study examines the effectiveness of an Audit Committee (AC) operating in a large government statutory body in an emerging economy, namely the Inland Revenue Board of Malaysia (IRBM). This study is timely, as previous studies focussing on AC effectiveness in relation to the public sector are sparse. Data collection was through in-depth interviews with key individuals involved in the IRBM governance process, including AC members, senior management and external auditors. The study finds existence of a weak AC governance function that inadequately oversees financial reporting and internal control systems. We find the independence of AC members questionable, as a communication gap exists between AC members and the external auditor. In particular, the study highlights that top management should ensure that its AC fulfils its assigned role and that urgent attention is given to issues on composition, appointment and diligence of its AC members. We conclude that the IRBM should consider improving independence by appointing an external independent AC member(s) from either the big four or an influential industry expert to provide the necessary input and expertise to ensure that public confidence continues.

Norfaiezah Sawandi · Norazita Marina Abdul Aziz · Ram Al Jafri Saad ·International Journal of Supply Chain Management ·2019

The objective of the study is to explore and examine the forms and means employed by one zakat institution in Malaysia in discharging its accountability to the stakeholders. Case study approach was used in the study involving the use of both of primary and secondary data. The primary data was gathered via the face to face in-depth interviews that were conducted with the representatives of the zakat institution. The secondary data was gathered from different sources such as the zakat collection and distributions reports of the zakat institution. The interview data was analysed using a manual coding and the secondary data was content analysed using a thematic analysis. The study finds that the zakat institution studied has been discharging two categories of accountability that are financial or formal and social or informal form of accountability. The financial/formal form of accountability has been discharged mainly via the zakat collection and distribution reports. Meanwhile, it is observed that the latter category of accountability has been discharged through both of means that are account- and action-based mechanisms, which include zakat collection and distribution reports and various non-zakat society/community programs respectively.