Audit Committees Have Been Widely Recommended as Being an Important

question 17

Essay

Audit committees have been widely recommended as being an important mechanism for enhancing the external auditor's independence.What are the important characteristics of audit committees and discuss why these characteristics are considered so important to a committee's effective and efficient operation.

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Definitions:

Normative Social Influence

The effect others have on an individual, causing them to adapt their behaviors to gain acceptance and approval.

Deindividuation

The loss of self-awareness and self-restraint occurring in group situations that foster arousal and anonymity.

Insecure

Feeling uncertain or lacking confidence in oneself, which can affect emotional well-being and interpersonal relationships.

Destructively Obedient

Following orders without moral consideration, leading to harmful actions that the individual might not ordinarily commit.