The Board of Directors and Audit Committee Guide to Fiduciary Responsibilities

CHAPTER TWO

Establish a Culture of Action

AN EFFECTIVE AUDIT COMMITTEE serves as a gatekeeper, protecting the long-term interests of shareholders and its other important constituencies, such as creditors, regulators, employees, customers, suppliers, and the public, as may be applicable. Succeeding as a committee depends on understanding the expectations as well as the essential competencies required of audit committees and their members.

Expectations of Audit Committees

The precise steps audit committees take to fulfill their duties is dictated by the expectations of audit committee members and all board directors, so clarifying the goals and outcomes of committee action is crucial. Those expectations are shaped, at a minimum, by four basic ...