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

CHAPTER 2

Sources and Drivers of the Audit Committee

Executive Summary

The sources and drivers of the audit committee are laws, regulations, rules, standards, and best practices, which ultimately define authority, independence, responsibility, attributes, accountability, and oversight functions. This chapter examines the sources and drivers of the audit committee. The audit committee is an integrated component of the corporate governance structure and as such its effectiveness depends on the overall effectiveness of corporate governance, which is affected by a set of rules, regulations, standards, and best practices. Some of the factors that may influence the audit committee effectiveness are independence of the members from executives, technical ...