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

CHAPTER 1

Audit Committee Education, Evaluation, Accountability, and Reporting

Executive Summary

Corporate governance reforms in the past two decades, including the Sarbanes–Oxley Act of 2002 (SOX), the Dodd–Frank (DOF) Act of 2010, and the Securities and Exchange Commission (SEC)–related implementation rules and listing standards, underscore the importance of the audit committee, evaluation accountability, and due diligence. These reforms have emphasized the importance of the company’s board of directors and its board committees, including the audit committee, to demonstrate a high level of due diligence, accountability, and professionalism. Audit committee accountability should reflect the audit committee’s commitment to proper education, training, ...