History of Audit Committees
Since 1940, the SEC has recognized that an audit committee could serve an important, and ultimately necessary, function in ensuring that a publicly traded company’s financial reporting is accurate. In the 1970s, the New York Stock Exchange (NYSE) required boards of directors of listed companies to appoint an audit committee; in the 1980s, the National Association of Securities Dealers (Nasdaq) and American Stock Exchange (AMEX) subsequently followed suit. In February 1999, audit committees received attention when a committee composed of individuals from the NYSE, Nasdaq, public companies, and CPA firms issued the Report and Recommendations of the Blue Ribbon Committee on Improving the Effectiveness of Corporate Audit Committees. The report recognized that the audit committee has a crucial role in ensuring high-quality financial reporting. Shortly after the report was issued, the SEC and the stock exchanges issued rules and regulations imposing certain requirements of, and responsibilities on, audit committee members. Today, a myriad of practices and regulations dictate the composition, roles, and responsibilities of audit committees.
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Audit Committee Guide - from Wachtell, Lipton, Rosen & Katz
Audit Committee Resource Guide - from Deloitte & Touche USA
Audit Committee Toolkit - The creation of an effective audit committee is an important way to enhance organisational governance and oversight. A widely used framework for internal controls is the COSO Internal Control — Integrated Framework developed by the Committee of Sponsoring Organizations (COSO) of the Treadway Commission.
- intended to shorten your learning curve; to become a successful director; to
effectively support your CEO or Executive Director. It gives you the risk
management foundation to understand the true nature of your role as
director. It supplies the whole context for governance. It's intended to
give you the confidence you need to participate effectively. It applies to
directors of for-profit and not-for-profit organizations.
IFRS Primer for Audit Committees - from the AICPA
Sample Audit Committee Charters\