Audit Committee Formation in the Aftermath of 2007-2009 Global Financial Crisis, Volume I

Introduction

The 2007–2009 global financial crises have eroded the public trust and investor confidence in corporate governance and the financial reporting process. Policymakers, regulators, and the business community have responded by taking proper initiatives to prevent further occurrences of financial crises. Restoring the public confidence requires a significant coordinated effort, regulatory measures, and best practices by policymakers, regulators, business organizations, and the accounting profession. One of the key provisions of these regulatory reforms, which seeks to restore public confidence, is that a properly constituted and functioning audit committee can improve the quality of financial reporting by acting as an effective arbitrator ...