History
Below are a few key milestones in the evolution of audit committees:
- 1939: The New York Stock Exchange (NYSE) first endorsed the audit committee concept.
- 1972: The U.S. Securities and Exchange Commission (SEC) first recommends that publicly held companies establish audit committees composed of outside (non-management) directors.
- 1977: NYSE adopts a listing requirement that audit committees be composed entirely of independent directors.
- 1988: AICPA issues SAS 61 "Communication with Audit Committees" addressing communications between the external auditor, audit committee and management of SEC reporting companies.
- 1999: NYSE, NASD, AMEX, SEC and AICPA finalize major rule changes based on Blue Ribbon Committee on Improving the Effectiveness of the Corporate Audit Committee.
- 2002: Sarbanes-Oxley Act is passed in the wake of corporate scandals and includes whistleblower and financial expert disclosure requirements for audit committees.
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Famous quotes containing the word history:
“The custard is setting; meanwhile
I not only have my own history to worry about
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Unfinished concepts that can never bring themselves to the point
Of being, with or without my help, if any were forthcoming.”
—John Ashbery (b. 1927)
“Modern Western thought will pass into history and be incorporated in it, will have its influence and its place, just as our body will pass into the composition of grass, of sheep, of cutlets, and of men. We do not like that kind of immortality, but what is to be done about it?”
—Alexander Herzen (1812–1870)
“The history of all hitherto existing society is the history of class struggles.”
—Karl Marx (1818–1883)