Similarly, even though a typical board meets more frequently (usually about six to eight times a year) than the audit committee, it has a variety of other issues on its agenda besides overseeing the financial reporting of the firm. The board is responsible for issues such as the hiring, compensation, and firing of the CEO and overseeing the firm’s overall business strategy, including its activity in the market for corporate control. So it is possible that even a well-functioning, competent, and independent board may fail to detect accounting problems in large firms. Accordingly, Sonda Chtourou, Jean Bedard, and Lucie Courteau find no significant relation between board independence and the.
