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10 point plan to improve oversight of pecuniary reporting process. 10 point plan to improve oversight of pecuniary reporting process The New York Stock Exchange and The Blue typewriter ribbon Committee saw a need for improvement in incorporate scrutiniseing. They released a report of IO far-reaching recommendations intended to improve the quality of corporate monetary reporting, head word 1. Revise the definition of independent director. They say the definition should enjoin as follows * Members of the audit charge should be independent and wee-wee no relationship with the corporation that may interfere with the exercise of their independence from precaution and the corporation. Point 2 take on an independent audit deputation. This point states that * (NYSE) and the (NASD) Should take in companies meeting the size criteria (large) should have an audit committee made up of independent directors. Point 3 Mandate minimum audit committee sizes and increased financial l iteracy. Companies that meet the size criteria (large) should have an audit committee comprised of a minimum of three directors. Furthermore, at least one of the members should have accounting or related financial management expertise, Point 4 Mandate written charter detailing responsibilities and duties. Adopt a titular written charter approved by the full board of directors that specifies the oscilloscope of the committees responsibilities, and to review and reassess the adequacy of the audit committee charter on an annual basis. Point 5 Mandate annual i3ublic disclosure of audit committee activities The (SEC) should require proof from the committee that it has adopted a form-only(prenominal) written charter, and to see if the committee satisfied it responsibilities under the charter. These findings also should be disclosed in the annual report to the stockholders. Point 6 light up oversight responsibility for outside tenders. It should be specified that the outside auditor is ultimately accountable to the board of directors and the audit committee as representatives of the shareholders. Point 7 Mandate discussion with outside auditor regarding independence. The rules should require that the audit committee is responsible for ensuring the receipt from the outside auditor of a schematic written statement delineating all relationships between the auditor and the company, that is consistent with (ISBS) And to sack up sure there is no foul play. Point 8 Require outside auditor to discuss quality of financial reporting-. (GAAS) Should require that a companys outside auditor discuss with the audit committee the auditors judgments about the quality.