Title: 30 Best Practice Considerations for the Public Company Audit Committee
Abstract: This chapter presents 30 policy and procedural issues that should be considered by all audit committees in the light of Sarbanes-Oxley Act of 2002 (Sarbanes-Oxley) and the related corporate scandals. Apart from the outside auditors, the chief executive officer, and the chief financial officer, the audit committee should consider interviewing controller and assistant controller, head of sales, tax manager, internal auditor, inside counsel, outside counsel, head of disclosure committee, corporate governance officer, head of human resources, head of information technology, head of corporate development, and head of purchasing. Each of them should be interviewed separately and not in the presence of superiors within the company. Non-audit services performed by the auditor should not exceed 100% of aggregate of audit services and audit-related services. To insure auditor independence, the engagement letter from the auditor should contain a representation that the auditor is and will remain independent as defined by Securities and Exchange Commission (SEC) and Public Company Accounting Oversight Board (PCAOB) rules throughout the audit engagement and a robust discussion with the auditor should be conducted at least once a year regarding the auditor's independence. The auditor should not be used for tax planning and tax preparation services. If the auditor is used for tax planning services, tax shelters or aggressive novel tax strategies from the auditor should not be purchased.
Publication Year: 2012
Publication Date: 2012-01-02
Language: en
Type: other
Indexed In: ['crossref']
Access and Citation
AI Researcher Chatbot
Get quick answers to your questions about the article from our AI researcher chatbot