Are Audit Committees Suffering from Overload?

Audit committee responsibilities have consistently increased, and practitioners have raised concerns that audit committees may be overloaded with duties. For example, in a 2005 interview, one audit committee member noted, “It’s becoming almost excessive. We get press releases almost weekly to review. It’s becoming a burden on my email at home. Earnings releases, litigation information, and acquisition information — something seems to always be coming my way” (Beasley et al. 2009). These concerns continue today. For example, forty percent of audit committee members polled by KPMG (2015) report that it is increasingly difficult to adequately fulfill all of the audit … Read more