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

CHAPTER 4

Audit Committees’ Interaction with Corporate Gatekeepers and those in Charge of Governance

Executive Summary

Boards of directors of public companies are responsible for overseeing the company’s strategic decisions, performance activities, financial reporting processes, internal control systems, risk management, audit practices, and corporate governance measures to create shareholder value while protecting interests of other stakeholders. Boards of directors often delegate their oversight responsibilities to board committees. Public companies in the United States are required to establish and maintain three common board committees of audit, compensation, and nominating committees. The board of directors may also establish special committees ...