The Relationship between the Audit Committee’s Characteristics and Risk Management in Kuwait
The Relationship between the Audit Committee’s Characteristics and Risk Management in Kuwait
Meshari Al-Hajri, Ph.D.
Department of Accounting,
College of Business Administration
Kuwait University
(Received 5/3/2018, accepted for publication 2/5/2018)
Abstract
The purpose of the current study is to extend prior audit research on the relationship between the Audit Committee’s (AC) characteristics and risk management by performing empirical examination about this relationship in the context of the Kuwaiti market. In particular, this study uses data related to a sample of Kuwaiti listed firms to examine whether AC characteristics have an impact on the establishment of a separate risk management committee within firms. This research endeavor is motivated by the scarcity of empirical evidence about this relationship in the context of developing countries’ markets. The results reported in the current study provide evidence of a significantly positive relationship between firms’ formation of a stand-alone risk committee and certain AC characteristics, namely size and financial expertise.
Keywords: Auditing, Risk management, Audit committee, Corporate governance, Kuwait
