Audit Committee Formation in the Aftermath of 2007-2009 Global Financial Crisis, Volume II

CHAPTER 1

Corporate Governance Oversight Function of the Audit Committee

Executive Summary

As the standing committee of the board of directors, the audit committee is an integral component of corporate governance. The corporate governance oversight of the audit committee is defined in its charter in participating with others in charge of governance in ensuring corporate governance effectiveness. Recent corporate governance reforms require that the audit committee interact with the board of directors, management, internal auditors, external auditors, legal counsel, financial advisors, regulators, and investors as discussed in this chapter.

 

Introduction

The analysis of the reported financial scandals of the late 1990s and the early 2000s as well ...