Auditing Audit Committees: An Educational Opportunity for Auditors

There is considerable anecdotal evidence that many audit committees are not adequately performing their duties. Auditors are in a unique position to judge the effectiveness of the audit committees of the companies they audit. Auditors should undertake to tell boards and audit committees of their clients what experience has taught them about audit committees, such as optimum size, the most desirable composition, duties to perform, and ways to maximize effectiveness. Moreover, auditor efforts to deepen the understanding of audit committees of their responsibilities might result in improved communications between audit committees and auditors. A starting point in the process might be the Treadway Commission report, which contains a description of the basic duties of an audit committee.