Three Things US Audit Committee Members Should Consider In 2015

Keywords: US Audit Committee, re-election, concept release

Audit Committees are facing increased demands from many quarters heading into 2015, which expand their responsibilities, expose them to greater regulatory scrutiny and potential liabilities, and provide the basis for proxy and shareholder activists to oppose the re-election of Audit Committee members to the board of directors of the company.

Regulatory focus on Audit Committees is likely to increase in 2015, as the Securities and Exchange Commission ("SEC") is expected to issue a Concept Release in early 2015 that will propose changes in Audit Committee disclosures in public company proxy statements. Those additional disclosures may cover reporting on Audit Committee oversight of annual and quarterly company reports as well as assessments of the effectiveness of the Audit Committee. Explaining the background of these proposed changes in 2014, SEC Chair Mary Jo White stated "You can't overstate the