Enhanced audit committee responsibilities

To stem the tide of significant accounting irregularities reported in the early- and mid- I990s and based on the recommendations of the Blue Ribbon Committee on Improving the Effectiveness of Corporate Audit Committees, the Securities and Exchange Commission, the New York Stock Exchange, the National Association of Securities Dealers, and the American Institute of Certified Public Accountants adopted several new audit committee related rules in December 1999. More recently, in connection with the adoption of amended rules governing auditor independence, the SEC adopted additional disclosure requirements applicable to audit committees. In addition to the new disclosures, the SEC has endorsed an expanded role for audit committees in assessing auditor independence. The combination of these requirements and suggestions creates a new world for audit committees.