Audit Committees STEP UP

de Mesa Graziano, Cheryl
January 2004
Financial Executive;Jan/Feb2004, Vol. 20 Issue 1, p44
Academic Journal
This article presents findings of interviews conducted by the Financial Executives Research Foundation with audit committee members. The author found that audit committees are taking a more active role in governing their organizations regardless of their company's size. For a typical audit committee, workload, time commitment and communication with senior management and auditors are on the rise. They are also meeting more frequently and becoming more involved in audit planning and defining the scope of the audit. All audit committees pre-approve external audit fees and perform thorough evaluations of the external auditor and the audit team. In the near term, committees still have to deal with internal control regulations resulting from Section 404 of the Sarbanes-Oxley Act.


Related Articles

  • Corporate Governance, Audit Quality, and the Sarbanes-Oxley Act: Evidence from Internal Audit Outsourcing. Abbott, Lawrence J.; Parker, Susan; Peters, Gary F.; Rama, Dasaratha V. // Accounting Review;Jul2007, Vol. 82 Issue 4, p803 

    This study extends current literature related to nonaudit services by investigating internal audit outsourcing to the external auditor. We posit that certain types of internal audit outsourcing (i.e., those which are nonroutine, and thus tend to be nonrecurring in nature) are unlikely to lead to...

  • THE RULES EXPLOSION. is it time to move toward principles? Quinn, Lawrence Richter // Strategic Finance;Jan2003, Vol. 84 Issue 7, p39 

    In this article the author examines the problems encountered in advocating a rules-based system in the accounting and auditing practices in the U.S. The author suggests that moving to a more principal-based system may be more beneficial for practitioners. He adds that the rule-based system was...

  • SEC Issues Final Rule on Standards Relating to Listed Company Audit Committees.  // Venulex Legal Summaries;2003 Q2, p1 

    The article focuses on a final rule implementing Section 301 of the Sarbanes-Oxley Act on standards relating to listed company audit committees, issued by the U.S. Securities and Exchange Commission on April 1, 2003. The rule has established requirements for listed companies, such as the...

  • Auditor Independence: A Focus on the SEC Independence Rules. Gramling, Audrey A.; Karapanos, Vassilios // Issues in Accounting Education;May2008, Vol. 23 Issue 2, p247 

    Auditor independence is an important underpinning of the federal securities laws. These laws require that registrants' financial statements filed with the Securities and Exchange Commission (SEC) be audited by independent public accountants. The focus on independence for public company auditors...

  • Do Former Audit Firm Partners on Audit Committees Procure Greater Nonaudit Services from the Auditor? Naiker, Vic; Sharma, Divesh S.; Sharma, Vineeta D. // Accounting Review;Jan2013, Vol. 88 Issue 1, p297 

    To address potential threats to auditor independence, the Sarbanes-Oxley Act of 2002 (SOX) requires the audit committee to pre-approve nonaudit services (NAS) procured from the auditor. However, the presence of a former audit firm partner (FAP) affiliated with the current auditor on the audit...

  • IMA Responds to the SEC. Butler, Margaret D. // Strategic Finance;Feb2003, Vol. 84 Issue 8, p35 

    This article presents a reprint of a letter sent by the Institute of Management Accountants president Margaret Butler to Jonathan G. Katz of U.S. Securities and Exchange Commission (SEC). In the letter Butler requests that the SEC expand their definition of a financial expert as provided in the...

  • SEC/PCAOB Finalize 494 Guidance.  // Strategic Finance;Jul2007, Vol. 89 Issue 1, p20 

    The article presents an editorial discussing final changes to Section 404 of the U.S. Sarbanes-Oxley regulations for auditing standards. The U.S. Securities & Exchange Commission (SEC) and the Public Company Accounting Oversight Board (PCAOB) both authored changes to Section 404. The author...

  • Party Of Three? A Source Credibility Perspective On The Use Of Consultants For Internal Control Assessments. Blaskovich, Jennifer; Mintchik, Natalia // Journal of Applied Business Research;Sep/Oct2009, Vol. 25 Issue 5, p59 

    In response to the demands of Sarbanes-Oxley Act and consequent accounting regulations regarding internal controls, some organizations engage the assistance of external consultants in compliance efforts. We experimentally investigate how the involvement of such an external consultant affects...

  • Sarbanes-Oxley Act Who Gets the Bill? Minter, Frank C.; Smith, Douglas L. // Strategic Finance;Mar2003, Vol. 84 Issue 9, p32 

    The article focuses on elements of the Sarbanes-Oxley Act (SOX) and some background concerning it. It states that the provisions of SOX include financial disclosures, fraud accountability, and auditor independence and are designed both for perceived independence of auditors and the Financial...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics