Improving corporate governance: The role of audit committee disclosures
Abstract
An increasing number of earnings restatements along with many allegations of financial statement fraud committed by high profile companies (e.g. Enron, WorldCom, Global Crossing, Adelphia) has eroded the public confidence in corporate governance, the financial reporting process, and audit functions. The Sarbanes-Oxley Act of 2002 was an attempt to regain confidence and trust in corporate America and the accounting profession. The Act addresses corporate scandals and the perceived crisis in the auditing profession. Some of its provisions relate to the audit committee oversight function over corporate governance, financial reporting, internal control structure, internal audit functions, and external audit services. This study examines three types of audit committee disclosures: The annual report of the audit committee; reporting of the audit committee charter in the proxy statement at least once every three years; and disclosure in the proxy statement of whether the audit committee had fulfilled its responsibilities as specified in the charter. This study conducts a content analysis on audit committee disclosures of Fortune 100 companies. © 2003, MCB UP Limited
Publication Title
Managerial Auditing Journal
Recommended Citation
Rezaee, Z., Minmier, G., & Olibe, K. (2003). Improving corporate governance: The role of audit committee disclosures. Managerial Auditing Journal, 18, 530-537. https://doi.org/10.1108/02686900310482669
