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Sarbanes-Oxley News & Developments
SOX New Rules Make Audit Committees More Responsible and EmpoweredEmpowering audit committees may be a good idea, but implementing that idea is tricky for some corporates.
> > The idea to create an independent group of experts in charge of hiring, compensating, and monitoring the activities of the outside auditors by the audit committees of public companies, was issued by the SEC. Audit committees also must assure there are no conflicts of interest with the auditor that is providing non-auditing services - or the audit committee members themselves.
In fact, the new rules mandated by the Sarbanes-Oxley Act (SOX), bars national securities exchanges from even listing the security of an issuer that falls short of audit committee requirements.
Most companies must be in compliance with these new rules by their first annual shareholders meeting after January 15, 2004.
Bottom line - In the SOX era, the audit committee has a tremendous amount of power.
Source: CFO article
Published:2003-07-11
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