Journal article

The Role of the Audit Committee in Their Oversight of Whistle-Blowing

Gladys Lee, Neil L Fargher

Auditing A Journal of Practice & Theory | AMER ACCOUNTING ASSOC | Published : 2018

Abstract

We examine the role of the audit committee in their oversight of whistle-blowing. Our study examines whether the quality of the audit committee, captured by its independence, expertise, and diligence, is associated with two whistle-blowing outcomes: the choice of reporting channel (external whistle-blowing versus internal reporting) and the likelihood of retaliation against the whistle-blower. Using a sample of internal and external whistle-blowing cases, we find that a high-quality audit committee reduces the probability that misconduct is reported externally relative to internally, and reduces the probability that a whistle-blower experiences retaliation. We further find that a higher-qual..

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University of Melbourne Researchers