An Examination of the Role of Audit Committees in the Saudi Arabian Corporate Sector

Based on a series of research interviews with academics and external and internal auditors, this paper examines the role of audit committees in the Saudi Arabian corporate sector. The interviewees expressed concerns about the terms of reference of audit committees and the scope of work undertaken. T...

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Bibliographic Details
Published in:Corporate governance : an international review 2002-10, Vol.10 (4), p.288-297
Main Authors: Al-Twaijry 1, Abdulrahman A. M., Brierley, John A., Gwilliam, David R.
Format: Article
Language:English
Subjects:
Audit committees
Cadbury Code
corporate governance
Saudi Arabia
Treadway Commission
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Summary:Based on a series of research interviews with academics and external and internal auditors, this paper examines the role of audit committees in the Saudi Arabian corporate sector. The interviewees expressed concerns about the terms of reference of audit committees and the scope of work undertaken. The independence of audit committees was called into question, as was the expertise of audit committee members. Audit committees had failed to establish close working relationships with either internal or external auditors. A particular criticism was that the requirements for audit committees as set out in Ministerial Resolve 903 lacked clarity. It was suggested that the Ministry of Commerce should issue further regulations and guidance in order to improve the effectiveness of audit committees and to enhance corporate governance in Saudi Arabia.
ISSN:0964-8410
1467-8683
DOI:10.1111/1467-8683.00293