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Audit Committee Members: the Act Affects You!
Last month, we discussed the provisions of the Sarbanes-Oxley Act (the Act) that directly affect audit committees. These included Title II: auditor indpendence. This month, we discuss Title III: corporate resposibility, and Title IV: enhanced financial disclosures.
Title III: Corporate Responsibility
- Section 301. Public company audit committees. This section specifies that audit committees are directly responsible for appointment, compensation and oversight of the work of an auditor.
This section is clearly instrumental in advancing corporate governance, as it transfers the responsibility of engaging the auditor from management to the audit committee, and, thereby, aligning the scope of the auditor's objectives with those of the shareholders. There are several initial and ongoing issues for the audit committee to consider in this regard. First, the audit committee should consider if continuing engagement of the auditor is appropriate in light of the partner's and the firm's industry experience. This issue's relevance depends on the complexity, diversity and operations of the company.
New York's Latest Cybersecurity Commitment
On Aug. 9, 2023, Gov. Kathy Hochul introduced New York's inaugural comprehensive cybersecurity strategy. In sum, the plan aims to update government networks, bolster county-level digital defenses, and regulate critical infrastructure.
Law Firms are Reducing Redundant Real Estate by Bringing Support Services Back to the Office
A trend analysis of the benefits and challenges of bringing back administrative, word processing and billing services to law offices.
Bit Parts
Summary Judgment Denied Defendant in Declaratory Action by Producer of To Kill a Mockingbird Broadway Play Seeking Amateur Theatrical Rights
Risks of “Baseball Arbitration” in Resolving Real Estate Disputes
“Baseball arbitration” refers to the process used in Major League Baseball in which if an eligible player's representative and the club ownership cannot reach a compensation agreement through negotiation, each party enters a final submission and during a formal hearing each side — player and management — presents its case and then the designated panel of arbitrators chooses one of the salary bids with no other result being allowed. This method has become increasingly popular even beyond the sport of baseball.