SEC Adopts New Rules Governing Determination and Disclosure of Audit Committee Financial Experts
- Topics:
- Regulatory issues
- Tags:
- Audit,
- Audit Committee,
- Audit Committee Financial Expert,
- Finance,
- Financial,
- Financial Accounting,
- SEC
- Source:
- Reed Elsevier
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Overview: This paper provides the description of the new rules that if the company has an audit committee financial expert, then the company must disclose the name of the expert and whether the person is independent of management. In determining whether an audit committee member is independent, domestic companies will need to refer to the definition of independence contained in the listing standards of the NYSE, AMEX, and the NASD, even if the company's securities are not listed on the NYSE or AMEX or quoted on Nasdaq. The SEC has recently proposed rules that would standardize the definition of independence used by the NYSE, AMEX, and the NASD. Foreign private issuers are not required to disclose whether an audit committee financial expert is independent until the proposed independence standard is finalized. If the company does not have an audit committee financial expert on the audit committee, then the company must disclose that it does not have an audit committee financial expert on the audit committee and explain why it does not have an audit committee financial expert on the audit committee.
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Format: HTML | Date: May 2003 | Pages: 1
