Audit Committee Formation in the Aftermath of 2007-2009 Global Financial Crisis, Volume I

CHAPTER 3

Framework for Audit Committees

Executive Summary

This chapter presents the framework for audit committees, including structure, attributes, and operations. Corporate governance has significantly reformed in the post-Sarbanes-Oxley Act of 2002(SOX) era and so has the audit committee as its integral component. The structure attributes and operations of the audit committee are shaped in compliance with resources and drivers of the audit committee as explained in the previous chapter. The structure of the audit committee transformed from the voluntary formation to the mandatory oversight function of corporate governance. The attributes of the audit committee evolved from a liaison between management and external auditors to an important ...