The Usefulness Of Audit Committee Reports: Assessments And Perceptions

Abstract

The Treadway Commission has strongly recommended that publicly regulated corporations be required to publish a report by the chairman of the audit committee. In contrast, the SEC does not believe such a report would provide any additional useful information. This study considers the extent to which publication of an audit committee report impacts certain assessments and perceptions related to the financial reporting processing. Overall, the results tend to confirm the SEC’s belief that inclusion of an audit committee report in the annual report is not likely to provide significant useful information.