Study: Audit Committees Rubber-Stamp Management

FROM CFO

While audit committees have become much smarter and more active since passage of the Sarbanes-Oxley Act of 2002, they are still feeling out their new authority. Even though they wield more influence than ever over the hiring and firing of auditors, for example, management continues to hold greater sway. And despite their new responsibility for resolving management-auditor disputes, many audit committees are still reluctant to do so.
Those are some of the findings of a new study by accounting professors at Boston College and Northeastern University, "Auditor Experiences of Corporate Governance in the Post Sarbanes-Oxley Era." The study follows up on a similar report by the same authors, which was based on a 2000 auditor survey.

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