title: AICPA standard can help improve audit committee performance.
abstract: The AICPA's Auditing Standards Board issued Statement on Auditing Standards (SAS) No. 90, Improving the Effectiveness of Corporate Audit Committees, in response to a related Securities and Exchange Commission (SEC) rule change. Under the standard, audit committees of publicly traded organizations must enter into discussions with their organization's auditors regarding the quality and the acceptability of the accounting principles that have been applied in the organization's financial statements. Although SAS No. 90 is intended for publicly traded entities, the standard has significant implications for all healthcare organizations in defining what constitutes an effective audit committee. To comply with the standard, audit committees should have independent directors who are rotated on and off the committee, training for committee members on the effective performance of their duties, a charter specifying committee responsibilities and membership requirements, meetings at least four times annually, and responsibility for retaining services of CPA firms to conduct the organization's annual audits.
authors.affiliation: School of Business Administration, Wayne State University, Detroit, Michigan, USA. a.reinstein@wayne.edu
authors.forename: A
authors.initials: A
authors.lastname: Reinstein
authors.forename: R W
authors.initials: RW
authors.lastname: Luecke
mesh_terms: D000066:Accounting / Q000592:standards*; D005375:Financial Audit / Q000592:standards*; D005377:Financial Management, Hospital / Q000458:organization & administration*; D011367:Professional Staff Committees / Q000458:organization & administration*; D012941:Social Responsibility; D014481:United States