A. The issue being addressed is the misappropriation of assets in publicly held companies and the possible relationship with financial expertise.
“The purpose of the study is to investigate the relationship between the financial expertise of the audit committee and the incidence of misappropriation of assets in publicly held companies”.
B. The research paper indicates a strong correlation between financial expert members and independent members and the likely misappropriation of assets. If AC members are financial experts the percentage of fraud occurring is less.
“Financial expertise and the independence of AC members improve their effectiveness in reducing the likelihood of misappropriation of assets in publicly held companies in the United States”.
C. The research paper is important due to the topic being research and the possible results. The research paper shows that there is a correlation between AC members being financial experts or accountants and the likelihood of misappropriation of assets. This could affect auditing in the way that an auditor can look into publicly held company members and determine the likelihood of fraud. This would be determine based on whether the AC members are financial experts or not. This research could call for AC members to…