Audit committee oversight of external audit: An examination of structural power and behavioural tactics
Document Type
Article
Publication Date
11-23-2022
Abstract
Purpose: This study aims to examine the structural power wielded by the audit committee (AC) and the various bases of its power, whilst also exploring the behavioural tactics used by the AC to leverage its power in the oversight of the external audit. Design/methodology/approach: Empirical evidence was drawn from semi-structured interviews with external auditors and AC members in Malaysia. Findings: The AC’s structural power is derived from its formal and network position in the organisation. The AC possesses three forms of organisational-based power (legitimate, coercive and informational) resultant from its formal position, and these combine with the AC’s personal power (will and expert). The AC uses its personal power base to develop trusting relationships and to promote the exchange of information with other key corporate governance actors in the network position. Furthermore, the AC applies at least four behavioural tactics (assertiveness, ingratiation, rationality and coalition formation) to exercise its bases of power. Originality/value: This study attempts to describe the AC’s structural sources of power, its organisational and personal power bases, and the behavioural tactics it uses when exerting its power. © 2021, Emerald Publishing Limited.
Keywords
Power bases, Audit committee effectivenes, sBehavioural tactics, Oversight duties, Structural power
Divisions
bisnesaccount
Funders
None
Publication Title
Meditari Accountancy Research
Volume
30
Issue
6
Publisher
Emerald Publishing