In addition to independence, the accounting and financial expertise of members of boards and audit committees has also received widespread attention from the media and regulators. By the end of 2003, all major . stock markets (NYSE, NASDAQ, and AMEX) started requiring that all members of the audit committee be financially literate and that at least one member have financial expertise. The rules assume that members with no experience in accounting or finance are less likely to be able to detect problems in financial reporting. On the other hand, given the relatively short time that boards and audit committees spend reviewing a company’s financial statements and controls, it is.
