Survey Results: Audit Committees and Earnings Releases

We last conducted a survey on audit committees and earnings releases in August 2005 (here are those results). Practices appear to have changed since then; to determine the extent of change, we have repeated many of the that survey's questions below (with some minor changes):

 1. Does your Audit Committee review your company's earnings releases prior to their release to the media? (Total responses: n=63)
(select only one)
n=58 (92.06%) Yes
n=5 (7.94%) No

2. If the answer to #1 is "Yes," how many days prior to public issuance of the earnings release is a draft typically sent to the Audit Committee? (Total responses: n=58)
(select only one)
n=15 (25.86%) One day or less
n=18 (31.03%) Two days
n=12 (20.69%) Three days
n=13 (22.41%) Four days or more

3. Does the Audit Committee hold a meeting for the purpose of discussing each earnings release prior to their release to the media? (Total responses: n=62)
(select only one)
n=50 (80.65%) Yes, and mostly (or all) by telephone meetings
n=5 (8.06%) Yes, and mostly (or all) by face-to-face meetings
n=7 (11.29%) No

4. If the answer to #3 is "No," is the Audit Committee informed about issues that will be discussed in the related earnings release? (Total responses: n=12)
(select only one)
n=2 (16.67%) Yes, in writing
n=6 (50.00%) Yes, at a meeting
n=4 (33.33%) No

5. Does your Audit Committee hold a single meeting to review both the earnings release and draft Forms 10-Q and 10-K? (Total responses: n=62)
(select only one)
n=31 (50.00%) Yes
n=31 (50.00%) No