Navigating knowledge and ignorance in the boardroom: A study of audit committee members' oversight styles

• 成果类型: Article
• 署名作者: Couchoux, Oriane
• 署名单位: Carleton University; Carleton University
• 刊物名称: CONTEMPORARY ACCOUNTING RESEARCH
• ISSN/ISSBN: 0823-9150
• DOI: 10.1111/1911-3846.12890
• 发表日期: 2024
• 页码: 459-497
• 关键词: CORPORATE GOVERNANCE; QUALITATIVE RESEARCH; Financial expertise; INTERNAL CONTROL; LITIGATION RISK; complexity; sociology; CONSTITUTES; CHALLENGES; experience

摘要

Using data collected from 21 interviews with audit committee members (ACMs) of Canadian reporting issuers, this study examines the ways in which ACMs understand and enact the additional responsibilities placed on them by regulators in the post-Sarbanes-Oxley Act era. Adopting a social constructivist approach to knowledge and expertise, the study shows that despite the financial literacy requirements for ACMs, financial expertise is far from being uniformly understood by ACMs. Indeed, ACMs perceive expertise in many different ways, which leads them to engage in a wide variety of practices to fulfill their responsibilities on audit committees (ACs). The analysis of the data makes it possible to identify three oversight styles-observing, inspecting, and storytelling-that illustrate the differences in how ACMs understand their role, prepare for AC meetings, invest time in this preparation, and develop lines of questioning. These findings provide empirical insights into both the substantive and symbolic roles of ACs and illustrate the role of knowledge and ignorance in shaping ACMs' understanding of their oversight role. This study also raises questions about the soundness of having ACs oversee multiple different processes. By highlighting that ACMs do not comprehend and enact their role uniformly, this study reveals the important nuances in ACMs' oversight approaches.