Audit Committee Requirements and Independent Auditors
- Topics:
- Investor Relations
- Source:
- Manatt, Phelps & Phillips
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Overview: The Sarbanes-Oxley Act of 2002 (the "Act") imposes extensive regulation upon public company audit committees and their independent auditors. The Act, and its implementing regulations, enhance audit committees’ responsibilities and duties and clarify the scope of services that an accounting firm can provide to an audit client while retaining its status as an "independent" accountant. Set forth below is a general summary of various provisions of the Act and its proposed and final implementing regulations relating to independent auditors and public company audit committees. The provisions of the Act indirectly necessitate that all issuers engage in a continuing review of their audit committee charters to ensure that they meet the requirements of the Act as the Act’s provisions are implemented. Counsel should be consulted to review any proposed changes to the audit committee charters. Those charters, as revised, should then be formally approved both by the issuer’s Board of Directors and audit committee.
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Format: HTML | Date: Jan 2003 | Pages: 1
