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Question - An audit committee's effectiveness in promoting the independence of the audit firm supposedly comes from acting as a surrogate for the shareholders.
The effectiveness of the audit committee is partly attributed to its members' outsider status on the board of directors. These members of the audit committee are expected to be non-executive directors who do not hold company management positions.
There is increasing concern, however, that the audit committees may not be as effective as they should be. Although they are typically outsiders, they are colleagues and friends of management and have been recommended for their positions on the board of directors by management.
Required - How effective are audit committees in achieving the goals expected of them?
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Cash from Investing Activities
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