ABSTRACT
An organization's board of directors constitutes the highest authority after the owners/shareholders. In the case of for-profit, publicly-traded companies, they are selected by the shareholders during the organization's annual meeting. Selected members of a company's board of directors responsible for hiring internal and external auditors, helping auditors remain independent of management, and oversee the process of preparing the company's financial reports. Corporate governance has gained a great deal of attention since the financial breakdowns involving Enron, WorldCom, Adelphia, Tyco, and many others between 2000 and 2002. The board of directors is the highest authority in an organization and is responsible for setting the tone at the top, overseeing the strategy for the entity, providing funding, and overseeing the activities of the company's senior managers in pursuit of the organization's mission and strategy. The board is comprised of several committees, including the audit committee, which internal and external auditors report to.
