Purpose – This paper examines the r

Purpose – This paper examines the role of the audit committee function, as an internal assurance
provider, in the emerging integrated reporting (IR) practice. In particular, we examine the role of
the overall effectiveness, as well as specific aspects, of the audit committee function in IR
practice.
Methodology – We examine the integrated reports of 246 firm-year observations of large South
African companies over a three-year period (2011-2013), following the introduction of an “apply
or explain” IR requirement and an embedded “combined assurance” model in South Africa.
Drawing from conflicting theoretical perspectives of economics-based (e.g., agency theory) and
socio-political theories (e.g., legitimacy theory), we develop competing hypotheses to predict the
role of the overall, as well as specific aspects, of the audit committee function in IR practice.
Findings – Consistent with the predictions of economics-related theories, we find that the overall
effectiveness of the audit committee function has a strong positive association with the extent
and quality of IR practice. In particular, audit committee authority and meetings are shown to
have a significant positive impact on IR practice. However, as implied by socio-political
theories, we do not find a significant association between key aspects of the audit committee
function such as audit committee independence and financial expertise and IR practice.
Practical implications – This study informs local and international regulatory authorities as well
as the business community about the potential significance of internal assurance mechanisms
such as the audit committee function in the emerging IR practice. Given the practical challenges
associated with independent external assurance provisions, the findings of this study suggest that
internal assurance mechanisms such as the audit committee function can be genuine and cost
effective alternative assurance mechanisms in enhancing the credibility and reliability of nonfinancial
reporting practices, particularly the emerging IR practice. The results also inform
academic researchers to take cognisance from the expanding roles and responsibilities of audit
committees and conduct in-depth investigation on “how” the audit committee function is
handling the increasing responsibilities.
Originality/value – The study provides initial empirical account toward the role of the audit
committee function in the emerging IR practice. The study is novel because it shows the
significance of internal assurance mechanisms in wider organisational reporting practice.
Keywords: Integrated Reporting, Audit Committee, Assurances, Combined Assurance, South

النتائج (العربية) 1:

الغرض – هذه الورقة تبحث دور وظيفة لجنة مراجعة الحسابات، كضمانة داخليةموفر، في الناشئة المتكاملة الإبلاغ الممارسة (الأشعة تحت الحمراء). على وجه الخصوص، يمكننا النظر في دورالفعالية الشاملة، فضلا عن جوانب محددة، وظيفة لجنة المراجعة في الأشعة تحت الحمراءالممارسة.منهجية-ندرس التقارير المتكاملة 246 عاماً شركة الملاحظات للجنوب الكبيرالشركات الأفريقية على مدى فترة ثلاث سنوات (2011-2013)، بعد إدخال "تطبيقالأشعة تحت الحمراء أو شرح "الشرط ونموذج مضمن" ضمان مجتمعة "في جنوب أفريقيا.الرسم من المنظورات النظرية المتضاربة على أساس الاقتصاد (مثل نظرية الوكالة) والنظريات الاجتماعية والسياسية (مثل نظرية شرعية)، نضع الفرضيات المتنافسة للتنبؤدور الجوانب الشاملة، فضلا عن محددة، لمهمة لجنة مراجعة الحسابات في الممارسة الأشعة تحت الحمراء.النتائج التي توصل إليها – تمشيا مع توقعات النظريات المتعلقة بعلم الاقتصاد، نجد أن مجملفعالية وظيفة لجنة المراجعة له ارتباط إيجابي قوي مع مدىونوعية الممارسة الأشعة تحت الحمراء. على وجه الخصوص، مراجعة حسابات السلطة اللجنة والاجتماعات ويبينلها تأثير إيجابي كبير على الممارسة الأشعة تحت الحمراء. لكن، وكما ضمني بالاجتماعية-السياسيةالنظريات، لا نجد ارتباط كبير بين الجوانب الرئيسية للجنة مراجعة الحساباتدالة مثل استقلال لجنة المراجعة والخبرة المالية وممارسة الأشعة تحت الحمراء.Practical implications – This study informs local and international regulatory authorities as wellas the business community about the potential significance of internal assurance mechanismssuch as the audit committee function in the emerging IR practice. Given the practical challengesassociated with independent external assurance provisions, the findings of this study suggest thatinternal assurance mechanisms such as the audit committee function can be genuine and costeffective alternative assurance mechanisms in enhancing the credibility and reliability of nonfinancialreporting practices, particularly the emerging IR practice. The results also informacademic researchers to take cognisance from the expanding roles and responsibilities of auditcommittees and conduct in-depth investigation on “how” the audit committee function ishandling the increasing responsibilities.Originality/value – The study provides initial empirical account toward the role of the auditcommittee function in the emerging IR practice. The study is novel because it shows thesignificance of internal assurance mechanisms in wider organisational reporting practice.Keywords: Integrated Reporting, Audit Committee, Assurances, Combined Assurance, South