Researchers recently have deepened the study of
governance and auditing outcomes with more recent
evidence on auditor selection and retention, findings
that governance characteristics influence auditors’ risk
assessments and planning decisions, some conflicting
results related to governance and auditor fees (audit and
non-audit), and evidence that internal audit budgets are
associated with governance characteristics (Carcello,
2011). Other recent insights include the importance of an
AC accounting expertise over broader financial expertise;
the apparent potential for an AC compensation methods
to influence an AC member judgments; the existence of
substantive, ceremonial, and informal AC processes; a
deeper understanding of an AC member evaluation of
accounting disagreements and adjustments; and the serious
consequences to directors when a company experiences
accounting trouble.