Page "Sarbanes–Oxley Act" Paragraph 33

* Boardroom failures: Boards of Directors, specifically Audit Committees, are charged with establishing oversight mechanisms for financial reporting in U. S. corporations on the behalf of investors.

These scandals identified Board members who either did not exercise their responsibilities or did not have the expertise to understand the complexities of the businesses.

In many cases, Audit Committee members were not truly independent of management.