Audit committee service precautions."CPAs as Audit Committee Members" does a very nice job outlining many issues prospective audit committee members need to address. For those thinking about audit committee service, it's it's 1. Contraction of it is. 2. Contraction of it has. See Usage Note at its. it's it is or it has it's be ~have also important to consider what research tells us about key red flags for accounting trouble. Studies have found that public company financial reporting fraud often is associated with weak boards of directors, weak audit committees, unethical unethical said of conduct not conforming with professional ethics. CEOs, companies in volatile or complex industries--computer hardware and software, financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. and health care, for example--and smaller businesses. I encourage prospective audit committee members to carefully evaluate the extent to which these factors are present, with particular focus on the independence, diligence and expertise of the current audit committee members and the CEO's integrity. If you are considering audit committee service in a higher-risk setting, then you need to ensure the directors and officers insurance policy and other protections will reduce your risk to an acceptable level. Dana R. Hermanson Professor of Accounting Kennesaw State University Kennesaw State University, commonly known as Kennesaw State, is a public, coeducational university and is part of the University System of Georgia. It is located in Kennesaw, an unincorporated community in Cobb County, Georgia, United States, approximately 20 miles north of Kennesaw, Georgia Kennesaw is a city in Cobb County, Georgia, United States. The population was 21,675 at the 2000 census. Census estimates as of 2005 indicate a population of 30,522. The original name for the town was Big Shanty, and it is now considered a suburb of Atlanta. |
|
||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion