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The Impact of Audit Committee Appointment and Reporting Arrangements on Audit Committees' Independence
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The role of auditing in the corporate governance structure is essential in the flow of quality information to the market participants. However, the governance literature has only just begun to consider the role of the audit as a component governance device (Anderson et al. 1993). Such a role emerged during the early 20th century when shareholders appointed representatives such as the board of directors, who serve their interests in the corporations. There responsibilities were to look out for the interests of the owners and to oversee the management of the entity. As part of their refinement process, these boards eventually added 'audit committees' as one of their sub-committees to address some of the more sensitive governance issues in these corporations.
Keywords
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