The report provides recommendations on the composition
and activities of audit committees that are designed to support
external auditors and to enhance the quality of internal monitoring.
Blue Ribbon Committee report addresses the issues of how to improve
the effectiveness of corporate audit committees and new regulations
related to the functioning of audit committee. In response
to these recommendations, SEC developed new rules that require
the disclosure of audit committee composition, charter and activities
in company's proxy statements (SEC, 1999).