The role of the audit committee in corporate governance-case study for a sample of companies listed on BSE and the London Stock Exchange-FTSE 100

摘要

This article proposes a deductive approach-from general aspects to particular aspects-that combines quantitative and qualitative studies. Theoretical knowledge is used for a better understanding of a phenomenon and not for making assumptions (Siti-Nabiha, 2009). Thus, in order to achieve our study, we selected 21 companies listed on Bucharest Stock Exchange (11 companies) and London Stock Exchange (10 companies). Please note that all the companies belong to the main index of these Stock Exchanges (Category 1-Bucharest Stock Exchange-and FTSE 100-London Stock Exchange). We mention that all these companies where chosen completely randomly, not using in their selection criteria as stock exchange capitalization, but still taking into account the availability of information. In this study, we tested a lot of statements using "true" or "false". To obtain the information, we accessed website of each company and annual reports for 2011 and Corporate Governance Regulations of companies in question. Following this study, we concluded that the role of the audit committee is crucial, although some aspects are more or less unevaluated by the companies from the sample on which the study was conducted. As a general conclusion, we can see that the companies listed on Bucharest Stock Exchange are not aware of the significant role of the audit committee in corporate governance, unlike foreign companies, which understand the significant role of this structure.