Abstract:

The purpose of this study is to examine whether the audit committee characteristics influence the financial restatement incidents that occurred in Malaysian Public Listed Companies (PLCs). The sample comprises of 208 PLCs on the Main Board of Bursa Malaysia for the years between 2003 and 2013. The data from the final sample are collected and analysed using univariate and multivariate analyses. The research hypotheses are developed based on the five characteristics of audit committee. The findings show that only the multiple directorships of audit committee member have significant negative relationship over the incidence of financial restatement in Malayisa. Whereas, other characteristics of audit committee are not statistically significant. This study endorses that multiple directorships influence financial restatements, conforming to the principles of Resource Dependence Theory.