Summary and conclusions
The main objective of this research is to investigate the implication of audit characteristics on firm’s financial restatement after the implementation of 14 W. M. WAN MOHAMAD ET AL. RMCCG2007 due to its heavy emphasizes on the role of the audit committee in improving firm’s corporate governance. In summary the results provides consistent evidence that audit committee size, the number of meetings it conducts, its members’ independence experiences have positive repercussions on firm’s financial restatement. The results suggest that efforts made by RMCCG2007 in improving the roles and functions of the audit committee have proven to be effective. However there are several limitations of this study.
Firstly, because Malaysia is unique and has different races that influence the country politically and economically, ethnicity has a major influence on how certain decisions may affect the business networking and rentseeking activities in major investment projects. Being a multiethnic country, board decision making may be influenced by the ethnic representation on the board. Ethnic Malays are argued to be politically influenced and may be subjected to higher audit fees due to their weaker governance structures, and some have argued otherwise. However some papers argue that ethnic Malay representation on the board may be due to their competency rather than political networking (Gomez & Jomo, 1997; Yatim, Kent, & Clarkson, 2006).
