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The value of an audit committee at a high-growth potential, small to medium-sized listed company

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dc.contributor.advisor Odendaal, Elizabeth Margaretha
dc.contributor.advisor Ackers, Barry La Grange, Madeleine 2016-03-10T08:43:47Z 2016-03-10T08:43:47Z 2015-11
dc.identifier.citation La Grange, Madeleine (2015) The value of an audit committee at a high-growth potential, small to medium-sized listed company, University of South Africa, Pretoria, <> en
dc.description.abstract A company’s board of directors is ultimately responsible for putting effective corporate governance (CG) structures in place as mechanisms to enhance its accountability to stakeholders. An audit committee (AC), which is a subcommittee of the board, is one component of the company’s CG structures. In South Africa, legislation, the Johannesburg Stock Exchange (JSE) listing requirements, and the King code and report of Governance for South Africa 2009 (King III) deal with the composition and responsibilities of ACs. As the shares of AltX listed companies, which are categorised as high-growth potential, small to medium-sized listed companies, are traded publicly, they are required to comply with the Companies Act and to establish an AC according to the Act’s composition requirements to fulfil mandatory responsibilities. In terms of the JSE listing requirements, AltX listed companies must appoint an AC or explain their reason(s) for not doing so. As the total market capitalisation of AltX listed companies has increased by 87% over the past three years, greater numbers of stakeholder groups are being affected. Since stakeholder groups are protected when companies implement effective CG processes, the purpose of this study is to understand the way in which the AC of an AltX listed company, as an example of a high-growth potential, small to medium-sized listed company, adds value to the company and its stakeholders. Attributes that contribute to the value added by ACs were identified as being the characteristics of AC members; the fulfilment of responsibilities through optimised activities; and the fulfilment of responsibilities by maintaining healthy relationships with the board and information providers. An explorative qualitative case-based research design was applied in terms of which a single AltX listed company was selected according to predetermined selection criteria. Data were collected using individual semi-structured interviews, field notes and company documents. Descriptive open coding techniques were used for data analysis with the findings of the study subsequently being presented in terms of a theoretical framework of the attributes that influence the extent to which the AC adds value. The findings of the study confirm that these attributes of the AC facilitate its ability to add value to the AltX listed company investigated and its stakeholders in terms of enlightened shareholder theory. en
dc.format.extent 1 online resource (vii, 211 leaves) : illustrations (some color)
dc.language.iso en en
dc.subject AltX listed company en
dc.subject Audit committee en
dc.subject Corporate governance en
dc.subject Directors Induction Programme en
dc.subject High-growth potential en
dc.subject Small to medium-sized listed company en
dc.subject Stakeholders en
dc.subject Value added en
dc.subject.ddc 657.458
dc.subject.lcsh Audit committees en
dc.subject.lcsh Auditing, Internal en
dc.subject.lcsh Boards of directors en
dc.subject.lcsh Corporate governance en
dc.subject.lcsh Business enterprises -- Auditing en
dc.title The value of an audit committee at a high-growth potential, small to medium-sized listed company en
dc.type Dissertation en
dc.description.department Auditing en M. Com. (Auditing)

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