Clarient Group Launches Audit Committee Advisory Services; Audit Committees to Face Increased Scrutiny Under New PCAOB Auditing Standard.

Business Editors

WASHINGTON--(BUSINESS WIRE)--March 15, 2004

Clarient Group LLC launches today to provide Audit Committees with much-needed support in their efforts to confront the growing demands of twenty-first century oversight. "Clarient Group was formed in response to feedback from Audit Committee chairpersons and CEOs of some of the nation's leading corporations. When a crisis happens, they have lawyers to call on, but they have had no independent resource for the day-to-day technical challenges and risks associated with conducting truly informed oversight," states Michael P. Joseph, Clarient Group co-founder.

Clarient Group's Informed Oversight(sm) approach provides year-round, hands-on support to optimize Audit Committee effectiveness. Underlying this continuous support is a structured framework of core diagnostic assessments performed by Clarient Group's team of subject matter experts. The assessments encompass the key areas of Audit Committees' oversight responsibilities, including accounting and financial reporting; internal control risk; external auditor oversight; and internal audit activities; as well as analysis of the Audit Committees' operating processes and protocols.

The need for expert support of Audit Committees has been made more pressing by the Public Company Accounting Oversight Board's (PCAOB) recent release of a standard that will require auditors to evaluate the effectiveness of Audit Committees. According to Clarient Group co-founder, Thomas P. Loughlin, "This new standard has the potential to cause considerable discomfort for Audit Committees across corporate America within the next several months - and for some companies, it may give rise to a significant disclosure event."

The PCAOB standard states that "ineffective oversight by the audit committee . . . should be regarded as at least a significant deficiency and is a strong indicator that a material weakness in internal control over financial reporting exists." Findings by the auditor of "significant deficiencies" may, or of "material weaknesses" will, have adverse legal and public disclosure implications for the company. Most NYSE- and NASDAQ-listed companies with calendar 2004 year-ends will undergo these new audits. Clarient Group's launch, following the PCAOB announcement, sends a clear signal to Audit Committee chairs, CEOs, and legal counsel of the Fortune 1000 that the support they need now exists.

Headquartered in Washington, DC, Clarient Group LLC is an independent management consulting firm comprised of former Big Four partners, recognized accounting policymakers, and leading analysts dedicated exclusively to supporting Audit Committees.

Clarient Group founders Michael P. Joseph and Thomas P. Loughlin collectively possess over 50 years' experience in working with and consulting to Audit Committees in several capacities, including Big Four audit partner, chief financial officer, and Audit Committee chair. Their clients have ranged from Fortune 100 corporations to start-up entities undergoing IPOs.