The recent and seemingly endless series of high-profile corporate scandals and failures has caused the investing public and regulatory authorities to become increasingly concerned about corporate governance and financial disclosure. The congressional response to this concern, the Sarbanes-Oxley Act of 2002 (the Act) contains, among many other provisions, significant enhancements to the responsibilities of audit committees. As a result of the Act, audit committees can no longer be rubber-stamping "yes-men" in corporate governance. They must now meet specific qualifications of financial literacy and independence, and exercise reasonable diligence and good faith judgment in the monitoring of management, and internal and external auditors. If they do not, they could subject the company and themselves to shareholder lawsuits and the company to SEC actions and/or being de-listed by their respective exchange. The provisions of the Act that directly affect audit committees are presented by title and section and discussed in this article.
J. Duross O'Bryan And Kelly L. MellePart One of a Two-Part Article
The recent and seemingly endless series of high-profile corporate scandals and failures has caused the investing public and regulatory authorities to become increasingly concerned about corporate governance and financial disclosure.
ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN LawJournalNewsletters
Already have an account? Sign In Now
For enterprise-wide or corporate access, please contact Customer Service at [email protected] or call 1-877-256-2473.
NOT FOR REPRINT
© 2026 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Entrepreneurship. It has such a romantic ring, doesn’t it? When we hear the word, we think of incredibly successful people who must lead a charmed life. But the truth of the matter is often far from that. Just ask Melissa Rogozinski whose recent book, Becoming Phoenix, tells a much different story.
Agentic AI introduces risks that are novel and complex, but the most effective response is a familiar one. Zero Trust answers the problem of when an AI agent misfires on its own by constraining what an agent can do rather than betting on how it will behave.
California is betting that it can accelerate AI adoption by acting as a demanding, trusted buyer, and that the governance evidence it extracts through procurement can become infrastructure the rest of the market reuses.
The outsourcing of office and administrative services is expected to grow 50%-60% in the next five years. Contrary to what decision-makers think, and what the service providers hope you think, the biggest risk in outsourcing isn't choosing the wrong provider. It's outsourcing the wrong process, under the wrong model, with the wrong performance measures and contract terms.
© Copyright 2026 ALM Global, LLC trading as Centellic.
Advertise with Us Customer Support Terms of Service Privacy Policy
