Audit committees have taken on much more responsibility in the past few years. However, it must also be remembered that audit committee service is not a full-time appointment.
a. Search annual reports at the SEC's Web site via EDGAR or by looking up the home page of selected companies. Select five companies (preferably in different industries) and prepare a report that describes the following:
? An analysis of the audit committee charters that identifies the commonalities in all the charters as well as any differences
? The characteristics of audit committee members (whether a CPA, current job status, other experience, and so on)
? The individual(s) identified as a financial expert
? The number of times the audit committee met during the year
b. Answer the following questions:
? How do the companies differ in terms of audit committee characteristics? What do you think are the underlying causes of the differences?
? What are the professional backgrounds of individuals designated as financial experts? How do these differ across the various organizations?
? What are the implications of variations in the amount of time that the audit committee met during the year?