E&Y claims ‘evolution’ in audit committee roles

Audit committees
are experiencing an evolution of their role to include broader oversight in
matters of financial responsibility and risk management, according to findings
based on
& Young’s 2006 Audit Committee Survey

The firm found this to be the case as audit committees adapted to the
heightened scrutiny and glare of the spotlight created by
Sarbanes Oxley.

‘Whether scrutinizing financial statements or exploring the possible risk
from a cross-border transaction, the work of audit committees is vital to the
future success of the companies they serve,’ said Karole Lloyd, vice chair,
industry & knowledge, at the firm.

The findings were based on a late 2006 survey of audit committee chairs and
members from 176 companies across 11 industry sectors.

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