• Escalating Issues to the Audit Committee: Reporting Up the Ladder
  • January 20, 2006 | Author: Peter H. Kesser
  • Law Firm: Baker, Donelson, Bearman, Caldwell & Berkowitz, PC - Memphis Office
  • Martindale-Hubbell posed the following question to provide a variety of views on this important topic:
    If, when and how should in-house counsel escalate issues to the audit committee?

    As in-house counsel, if you suspect that your company or any of its directors, officers or employees has violated a law of legal obligation, you must, first and foremost, comply with your state's rules of professional responsibility and, if you work for a public company, the SEC's attorney conduct rules. There is simply no substitute. On a more practical level, you should be dispassionate in evaluating the evidence, reasonable in drawing your conclusions, cautious in handling the information, deliberate in moving your report "up the ladder," and ever-mindful of your duty to act in the company's best interest.