RISK MANAGEMENT AND INTERNAL CONTROL DISCLOSURE AMONG MALAYSIAN LISTED ISSUERS

  • Raja Adzrin Raja Ahmad Faculty of Accountancy, Universiti Teknologi MARA
  • Nor Balkish Zakaria Accounting Research Institute and Faculty of Accountancy, Universiti Teknologi MARA
  • Rahimah Mohamed Yunos Faculty of Accountancy, Universiti Teknologi MARA
  • Syahrul Ahmar Ahmad Faculty of Accountancy, Universiti Teknologi MARA
  • Norhidayah Abdullah Faculty of Accountancy, Universiti Teknologi MARA

Abstract

Over the years, firms have been pressured by various stakeholders to be transparent about how they operate. In this regard, good corporategovernance should ensure timely and accurate disclosure is made on a firm’s financial, risk management and internal control. Hence, the purpose of thisstudy is to construct an index for risk management and internal control. This index used to assess the extents of Malaysian listed firms’ compliance of therisk management and internal control guidelines created for directors of listed issuers. The index was developed based on the requirements, underParagraph 15.26(b) of Bursa Malaysia Securities Berhad’s Main Market Listing Requirements (‘Listing Requirements’), as guided by the ‘Statementon Risk Management and Internal Control: Guidelines for Directors of Listed Issuers’. This guideline , which was released on 31 December 2012,incorporates the revision made to the Statement on Risk Management & Internal Control: Guidelines for Directors of Listed Issuers (issued in 2000).The findings of this study reveal that the compliance score by the sample firms reach about 70 per cent. The result is beneficial to the industry ledTask Force to ascertain how the revised guidelines were incorporated into corporate governance dislosure. The findings of this study could also beuseful for firms to determine the adequacy of their risk management and internal control practices and ensure that these guidelines are communicatedappropriately and effectively. This, in turn, will assist firms to achieve their corporate objectives and match stakeholders’ expectations within an ethicaland healthy corporate culture.
Keywords: Disclosure, internal control, risk management
Published
Jun 23, 2016
How to Cite
RAJA AHMAD, Raja Adzrin et al. RISK MANAGEMENT AND INTERNAL CONTROL DISCLOSURE AMONG MALAYSIAN LISTED ISSUERS. Management & Accounting Review (MAR), [S.l.], v. 15, n. 1, p. 297-313, june 2016. ISSN 2550-1895. Available at: <http://arionline.uitm.edu.my/ojs/index.php/MAR/article/view/574>. Date accessed: 05 mar. 2021. doi: http://dx.doi.org/10.24191/mar.v15i1.574.