Explain the difference between the audit committee’s responsibility regarding the external auditor and the audit committees’ relationship to the internal audit and regulatory audit functions. The audit committee’s responsibility regarding the external auditor To improve auditor independence, the passage of the Sarbanes-Oxley Act of 2002 has greatly expanded the duties of the audit committee in monitoring the external audit . The audit committee’s responsibilities regarding the external auditor include the following. (a) The audit committee is solely responsible for all the aspects relating to selecting, hiring, and replacing external auditors. (b) Compensation to external auditors is approved by the audit committee. (c) External auditors report directly to the audit committee. (d) The audit committees discuss and resolve disagreements between management and external auditors.
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This note was uploaded on 02/01/2012 for the course ACCT ACC562 taught by Professor Williamguy during the Fall '10 term at Strayer.