I was one of eight members of The Blue Ribbon Committee on Improving the Effectiveness of Corporate Audit Committees
, established by the NYSE and the National Association of Securities Dealers to review possible changes in listing requirements.
Titled "Improving Audit Committee
Performance: What Works Best," the study outlines how to address the areas of greatest concern for audit committees
today and also discusses where the most pressing future challenges are developing.
A must-have for all audit committee
members, board directors, corporate secretaries, CEOs, CFOs, and auditors involved in the accounting practices of their firms, The Audit Committee
Handbook, Fifth Edition is the most authoritative work on audit committees
in the marketplace.
One result of the accounting scandals of recent years is the enormous attention given to audit committees
of public companies and the subsequent change in the committee's role and practices.
So how can audit committees
address the risk of management override of internal controls as part of their oversight of the financial reporting process?
Projects that the AICPA Foundation helped fund during the past year include two new television programs that teach middle and high school students about personal finance and the accounting profession; "Financial Smarts for Teachers," which helps instructors understand their own finances; a disaster recovery guide, which was produced in conjunction with the National Endowment for Financial Education and the AICPA; and the Audit Committee
Effectiveness Toolkit, a broad sampling of checklists, questions, reports and guidelines that help audit committees
achieve best practices.
In this regard audit committees
are looking closely at the types of services the outside auditor provides and, as required by Sarbanes-Oxley, preapproving all such services.
of public companies are trying their best to adjust to the Sarbanes-Oxley Act of 2002, related SEC rules, and the increased focus by shareholders, corporate governance rating groups, and others on audit committee
The responsibilities of corporate audit committees
are increasing in both number and complexity.
Written for seasoned professionals as well as newly assigned board members, Audit Committee
Essentials is a vital tool in order to stay abreast of the rapidly changing governance requirements and responsibilities of audit committees
Now, as many public companies are moving to a "sustaining" or maintenance mode, audit committees
are becoming increasingly concerned with escalating audit fees.
Table 2 indicates the number of members on audit committees
as disclosed in the proxy statement.