Audit committee members should have regular time in meetings to talk with the outside auditors without managers present. Best practices for audit committee processes have been laid out many times, including in the 1980s by the Treadway Commission and in 2000 by the Blue Ribbon Committee. Beyond that, boards of directors and managers should periodically test where they stand on ethical business practices.
Although some of the Commission’s proposals lean towards a more consistent application of the Pact within its current framework, we feel that a reform of the Pact is not necessary. The problem with the Stability and Growth Pact lies not in its terms but in its implementation.