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"ACCOUNTING FOR LIABILITIES OF THE FEDERAL GOVERNMENT"

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Panel C of Table 5 describes the board’s audit committee for our restating and control samples. With the exception of one restating firm (Oil-Dry Company), each firm in both our samples has an audit committee. In many respects, the structure of this committee is similar for the two groups of firms. The median size of this committee is three members in each group. The mean (median) proportion of independent directors on this committee (PIDAUD) is about 94 percent (100 percent) in both groups. But there is one striking difference between the two groups. The mean proportion of firms whose audit committees include at least one independent director with.

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