It's the audit committee, stupid

Abstract

The article focuses on the role of the audit committee in the financial reporting process. In the post-Sarbanes-Oxley Act era, most proposals for mitigating accounting irregularities have focused on auditors. Various proposals have attempted to deal with the shortcomings of the Big Four, including limited but strict liability, an end to limited liability and financial statement insurance. It informs that the audit committee as directors, who realise that they now have 'skin in the game' have begun to question their appropriate function in corporate governance.