SECThe audit committee plays an active role in monitoring the financial reporting practices of a public company and in the oversight of the independent auditor. Because of concerns that investors may have limited information on how audit committees exercise their oversight of the independent auditor, the SEC has issued a “concept release” on the audit committee disclosure requirements while soliciting public comments on factors considered by the committee when overseeing the independent auditor which includes the appointment and retention of the auditor.

SEC Chair Mary Jo White said “The way audit committees exercise their oversight of independent auditors has evolved and it is important to evaluate whether investors have the information they need to make informed decisions.” The SEC intention is to examine whether improvements can be made to enhance the information provided to investors about the audit committee’s responsibilities and activities.

Investors can expect more expanded disclosures on the functioning of the audit committee.

For further details, see

http://www.sec.gov/news/pressrelease/2015-138.html

google_plusmailby feather