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10 heighten plan to improve oversight of financial reporting process. 10 extremum plan to improve oversight of financial reporting process The novel York Stock Exchange and The Blue Ribbon Committee saw a need for improvement in corporate auditing. They released a report of IO far-reaching recommendations mean to improve the quality of corporate financial reporting, Point 1. Revise the commentary of independent director. They say the definition should read as follows * Members of the audit military commission should be independent and down no relationship with the corporation that whitethorn interfere with the exercise of their independence from management and the corporation. Point 2 desire an independent audit citizens committee. This point states that * (NYSE) and the (NASD) Should require companies pull togethering the size criteria (large) should have an audit committee made up of independent directors. Point 3 Mandate minimum audit committee sizes and increased fi nancial literacy. Companies that meet the size criteria (large) should have an audit committee comprised of a minimum of threesome directors. Furthermore, at least one of the members should have accounting or connect financial management expertise, Point 4 Mandate written deal detailing responsibilities and duties. Adopt a formal written charter canonical by the full menu of directors that specifies the scope of the committees responsibilities, and to review and reassess the enough of the audit committee charter on an one-year basis. Point 5 Mandate annual i3ublic disclosure of audit committee activities The (SEC) should require proofread from the committee that it has adopted a formal written charter, and to see if the committee satisfied it responsibilities under the charter. These findings also should be disclosed in the annual report to the stockholders. Point 6 Clarify oversight responsibility for out of doors auditors. It should be specified that the outside audito r is ultimately accountable to the board of directors and the audit committee as representatives of the shareholders. Point 7 Mandate password with outside auditor regarding independence. The rules should require that the audit committee is responsible for ensuring the put across from the outside auditor of a formal written statement delineating completely relationships between the auditor and the company, that is consistent with (ISBS) And to make sure there is no foul play. Point 8 Require outside auditor to controvert quality of financial reporting-. (GAAS) Should require that a companys outside auditor handle with the audit committee the auditors judgments about the quality.