Audit Committees: How Good Are They?

Authors

F. Todd DeZoort, University of AlabamaFollow
Dana R. Hermanson, Kennesaw State UniversityFollow
Richard W. Houston, University of AlabamaFollow

Document Type

Article

Publication Date

5-2002

Abstract

The article analyses the performance of audit committees in the United States. The new disclosure rules for audit committees issued by the U.S. Securities and Exchange Commission are designed to improve disclosure related to the functioning of corporate audit committees and to enhance the reliability and credibility of financial statements of public companies. The article presents information on a study which addresses both audit committee members' financial expertise and their perceptions of materiality issues.