Realistic expectations for audit committees

The Business Roundtable (BRT) fully supports SEC Chairman Arthur Levitt's statement that "qualified, committed, independent, and tough-minded audit committees represent the most reliable guardians of the public interest." Specifically, the BRT believes that the audit committee should provide oversight to the "process," but not be responsible for implementing day-to-day suggestions generated by the internal and external auditors for improvements in the system of internal controls. It appears that the SEC may view audit committees' roles as much more "hands-on-financial controls" than is really feasible or appropriate for outside directors.