TY - JOUR T1 - Audit Committees—A More Visible and Demanding Role JF - Special Issues SP - 63 LP - 69 VL - 2003 IS - 2 AU - Mark C. Terrell AU - Scott A. Reed Y1 - 2003/09/21 UR - https://pm-research.com/content/2003/2/63.abstract N2 - The audit committee's responsibility to effectively oversee the integrity of the financial reporting process has become a mandate of the capital markets in the aftermath of the sweeping changes affecting corporate governance. The audit committee's oversight role is a critical element of the financial reporting process. An audit committee member's role is more time-consuming and challenging than ever. Audit committee members must be independent of management, engaged, experienced, ethical, inquisitive, and intuitive to provide effective oversight and help rebuild the public's trust in the capital markets. Although the audit committee process has been changed fundamentally by recent corporate accountability reforms, many of the underlying concepts have been debated and considered since the 1999 report of the Blue Ribbon Committee on Improving the Effectiveness of Corporate Audit Committees and the 1987 report of the Treadway Commission. Current challenges that audit committee members face include balancing practicality and priorities with the new governance environment; ensuring the committee avoids a “checklist” mentality and focuses on substance as well as form; and instituting required changes in attitude, culture, and overall approach. ER -