For the first time, the New York Stock Exchange demanded independent audits
of public company books.
In 2002, the diocese agreed to five independent audits
, and prosecutors agreed not to seek criminal indictments against the church for failing to protect children.
Generally, they call for (1) mandatory independent audits
based on organization size, (2) independent audit
committees with financial expertise, (3) governing board review (including executive compensation review), (4) whistle-blower provisions and (5) certification of financial statements.
At least annually the audit committee must review the external auditor's report describing the company's internal control procedures, any issues arising from independent audits
or regulatory investigations by governmental authorities and all relationships the audit firm has with the company.
No independent audits
of the companies had been concluded, and several audits remain to be conducted.
Simultaneously, the Public Oversight Board's Panel on Audit Effectiveness was conducting its own review and evaluation of the way independent audits
Review the scope and results of internal and independent audits
In May, after 18 months of study, a panel appointed by the Public Oversight Board to examine the effectiveness of independent audits
released a draft statement of its findings.