Crown image Columbia Law School

SEC Addresses Audit Committees’ Role in Financial Reporting

Introduction[1]

The strength of our public company financial reporting system relies on many stakeholders playing different but interconnected roles in a process designed to provide investors and our markets with high-quality, reliable financial information. Audit committees play a vital role in the financial reporting system through their oversight of financial reporting, including the internal control over financial reporting (ICFR) and the external, independent audit process.[2]

In 2002, the Sarbanes-Oxley Act[3] introduced a number of requirements to increase and strengthen the role of audit committees in financial reporting, including the independent audit committee requirement. We believe the measures

Read more