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Who's on Your Board?
Certainly most, if not all of the business community is aware of the corporate scandals of the past few years; Enron, WorldCom, and Tyco, just to name a few. These business failures not only affect employees and management, they affect the families of all employees, stockholders, and any person or company with which these companies conducted business.
As tragic as the loss of jobs, loss of retirement savings, and costs to prosecute are, there is something that could be worse: knowing that all of it could have been prevented. Each one of these companies had an audit committee that was ultimately responsible for overseeing the audit and issuance of financial statements. This is not to say each of these scandals was completely the fault of the audit committees or the boards of directors. However, some steps could have been taken to minimize these risks.
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