Page "Board of directors" Paragraph 93

The Sarbanes – Oxley Act of 2002 has introduced new standards of accountability on boards of U. S. companies or companies listed on U. S. stock exchanges.

Under the Act, directors risk large fines and prison sentences in the case of accounting crimes.

Internal control is now the direct responsibility of directors.

The vast majority of companies covered by the Act have hired internal auditors to ensure that the company adheres to required standards of internal control.

The internal auditors are required by law to report directly to an audit board, consisting of directors more than half of whom are outside directors, one of whom is an accounting expert.