Survey Results: Audit Committees and Earnings Releases
We last conducted a survey on
audit committees and earnings releases in August
2005 (here are those
results). Practices appear to have changed since
then; to determine the extent of change, we have
repeated many of the that survey's questions below
(with some minor changes):
1. Does your Audit Committee review your company's earnings releases
prior to their release to the media? (Total
responses: n=63)
(select only one)
n=58 (92.06%)
Yes
n=5 (7.94%)
No
2. If the answer to #1 is "Yes," how many days prior
to public issuance of the earnings release is a
draft typically sent to the Audit Committee?
(Total responses: n=58)
(select only one)
n=15 (25.86%)
One day or less
n=18 (31.03%)
Two days
n=12 (20.69%)
Three days
n=13 (22.41%)
Four days or more
3. Does the Audit Committee hold a meeting for the
purpose of discussing each earnings release prior
to their release to the media? (Total
responses: n=62)
(select only one)
n=50 (80.65%)
Yes, and mostly (or all) by telephone
meetings
n=5 (8.06%)
Yes, and mostly (or all) by face-to-face
meetings
n=7 (11.29%)
No
4. If the answer to #3 is "No," is the Audit
Committee informed about issues that will be
discussed in the related earnings release?
(Total responses: n=12)
(select only one)
n=2 (16.67%)
Yes, in writing
n=6 (50.00%)
Yes, at a meeting
n=4 (33.33%)
No
5. Does your Audit Committee hold a single meeting
to review both the earnings release and draft Forms
10-Q and 10-K? (Total responses: n=62)
(select only one)
1. Does your Audit Committee review your company's earnings releases
prior to their release to the media? (Total
responses: n=63)