1. What are the fundamental economic determinants of audit committee independence? Discuss the effect of each one. 2. To what extent can the composition of the audit committee, particularly with...

1. What are the fundamental economic determinants of audit committee independence? Discuss the effect of each one.

2. To what extent can the composition of the audit committee, particularly with regard to the presence of outside directors, influence the reliability of financial reporting? Discuss the empirical findings regarding this relationship.

3. Discuss the main responsibilities of the audit committee towards independent auditors. What are the effects of audit committee on the external auditors’ performance and effectiveness?