This dissertation examines whether audit committee members’ social identities and related corporate governance roles are associated with the quality of monitoring performed by the audit committee. To guide my dissertation I develop a conceptual model of how audit committee members’ social identities ultimately influence the effectiveness of the audit committee. The model proposes that audit committee members’ professional experiences outside of the audit committee lead to expertise and the development of a social identity. The social identity provides audit committee members’ with internalized beliefs, norms, and expected actions that affect the corporate governance roles these individuals assume, and ultimately affect the quality of monitoring performed by the audit committee. Within this conceptual framework, I examine whether audit committee members’ social identities are associated with the quality of monitoring performed by the audit committee with two related investigations. First, I employ a field interview methodology and interview 26 audit committee members. Based on these interviews I identify four primary audit committee member social identities derived from professional experiences. I find that these social identities appear to influence how audit committee members view their role on the audit committee, perceive that they add value to management and shareholders, how strongly they identify with the company they serve and its management, and ultimately that they influence audit committee members’ judgments. In my second investigation, I employ an archival methodology to examine whether the four social identities identified in my field study are associated with the quality of financial reporting monitoring performed by the audit committee. Specifically, I examine whether the composition of Initial Public Offering audit committees is associated with the likelihood of an accounting restatement, a material weakness, or whether the company meets or just beats analysts’ forecasts. My results suggest that audit committee members’ social identities and related corporate governance roles do influence monitoring quality. Furthermore, the results imply that professional experiences typically associated with financial expertise do not provide similar levels of audit committee monitoring effectiveness. Together, my two investigations provide a deeper understanding of determinants of audit committee effectiveness that are not explored in previous research.

"Role and responsibilities of Audit Subcommittees of Boards. Provides a practical introduction to the role of and responsibilities of the audit committee. Explains the context in which an audit committee typically operates and outlines good practice. Reflects developments in audit committee practice, legislation and gudance from regulatory bodiesand leading global board practices since 2001."--Provided by publisher.

Praise for Audit Committee Essentials "Audit Committee Essentials is an excellent and comprehensive resource, documented with key references and illustrated with real-life company examples for all types of commercial and nonprofit enterprises. Dr. Verschoor brings into focus the intertwined impact of risk management, internal controls, and ethics on oversight responsibilities for both the audit committee and the entire board of directors. From my personal perspective as an audit committee member and as a director of both profit and nonprofit entities, this book should be required reading for corporate management, boards of directors, and their committees." --George K. Gill, Chairman and CEO of PetAg, Inc.; Director and member of the Investment and Audit Committees of the United Methodist Foundation of Northern Illinois "Maintaining the highest ethical standards is critical to the success of not-for-profits in today's world. Dr. Verschoor's book provides a practical, highly prescriptive approach to ensuring that governance processes meet the highest expectations of managers, employees, volunteers, contributors, and other stakeholders. I am very impressed with the readability of the book. It definitely raises one's awareness of the need for a thought-out plan that ensures strong financial and ethical credibility." --John S. Maxson, President and CEO Greater North Michigan Avenue Association, Chicago, Illinois A concise and readable account of the audit committee's roles and responsibilities The Sarbanes-Oxley Act has changed the way all corporations now operate, regardless of size. In Audit Committee Essentials, goverance expert Curtis Verschoor explains with great detail and razor-sharp precision why internal control is so critical, emphasizing financial literacy, a requirement under Sarbanes-Oxley, as well as oversight of the financial reporting process and related controls, ethics and the internal and independent audits. Written for seasoned professionals as well as newly assigned board members, Audit Committee Essentials is a vital tool in order to stay abreast of the rapidly changing governance requirements and responsibilities of audit committees.

Why do we need to understand audit committees? The Cadbury Committee recommended that UK companies should adopt them in response to financial scandals that have stemmed from dubious financial reporting practices. In other countries, similar commissions have made similar recommendations and audit committees are now a common institution. However, many practitioners doubt whether an audit committee really does much to ensure the integrity of a firm's financial statements because, as outsiders, members don't know enough to dig deeply beneath the numbers. The Audit Committee: Performing Corporate Governance argues that such criticism overlooks the ceremonial function of these committees. The audit committee is an arena where members can form and strengthen shifting and fragmentary networks with each other and with the external auditors. Within these networks, both consensus and independence are demonstrated, generating comfort, which legitimises the company and maintains its access to external sources of capital. The audit committee is a key part of the corporate governance structure within an organisation. Many in the UK have been patched together to meet regulatory requirements and their operation is poorly understood because few people other than their members have access to their deliberations. In this account of the world of audit committees the practitioner will find the ethnographical perspectives on ceremonial performance, consensus, independence, and comfort both familiar and different. It's like looking at a photograph of something commonplace from an unusual angle or through a strange-shaped lens.

This Handbook provides an incisive, rigorous and contemporary guide to research methods in the continually evolving area of corporate governance, offering a welcome focus on holistic approaches to research. Not only analysing existing research methods dominated by the quantitative-qualitative dichotomy, it also explores the crucial need to challenge assumptions and methodologies in order to advance research in the field.

Audit Committees: A Guide for Directors, Management, and Consultants is presented in a non-technical, easy-to-read format, especially for: directors serving on audit committees; other members of the board of directors; CEOs, CFOs, and in-house legal counsel; internal and external auditors; outside legal counsel; other consultants to audit committees. Audit Committees: A Guide for Directors, Management, and Consultants, with all post-Sarbanes-Oxley developments, is coauthored by legal and accounting professionals with hands-on experience. One of the authors has organized, chaired and participated in a number of audit committees, while the other has been involved in issues relating to internal control, fraud, illegal acts, materiality, and required communications to audit committees. Audit Committees: A Guide for Directors, Management, and Consultants covers subjects rarely discussed, such as the process for terminating an external auditor. It emphasizes the importance of regular evaluations of audit committee performance to help make the audit committee more effective and efficient.

Even though audit committees have traditionally been a key component of corporate governance regulation, the last decade has witnessed a greater emphasis on audit committee regulation and a parallel intensification of academic research on the subject. This review synthesizes recent empirical research seeking to investigate various aspects of audit committees' governance role. The review is structured around current regulatory expectations of audit committees seeking to document the extent to which specific characteristics of good practice influence various components of audit committee effectiveness. It is found that larger and more independent audit committees as well as those with financial expertise are more likely to seek a higher level of external audit coverage and assurance. There is also evidence that more independent audit committees are associated with the purchase of lower levels of non-audit services from auditors, thereby seeking to preserve the independence of the external audit process. There seems a consensus that more independent audit committees and those with greater accounting/financial expertise have a positive impact on the quality of financial statements. Evidence on the stock market reaction to audit committee issues suggests that investors both welcome the presence of audit committees and react positively when members are appointed with relevant expertise. It is also found that internal auditors view certain audit committee characteristics, specifically independence, expertise and frequency of meetings, as leading to more effective audit committee performance. In summary, therefore, this review documents a significant amount of evidence offering support to current regulations concerning the desired characteristics of audit committees.