Audit committees should not only oversee both internal and external auditors, but also be proactively involved in understanding issues related to the complexity of the business, and, when appropriate, challenge management through discussion of choices regarding complex accounting, financial reporting, and auditing issues.
( ( Audit committees ) ( ( ( ( should not ) only ) ( ( ( ( ( oversee ( both ( internal ( and ( external auditors ) ) ) ) ) , ) but ) also ) ( be ( proactively ( involved ( in ( ( understanding ( ( ( ( ( issues ( related ( to ( ( the complexity ) ( of ( the business ) ) ) ) ) ) , ) and ) ( , ( ( when appropriate ) , ) ) ) ( challenge management ) ) ) ( through ( discussion ( of ( choices ( regarding ( ( ( ( ( ( complex accounting ) , ) ( financial reporting ) ) , ) and ) ( auditing issues ) ) ) ) ) ) ) ) ) ) ) ) ) ) . ) )
(ROOT (S (NP (NNP Audit) (NNS committees)) (VP (MD should) (RB not) (ADVP (RB only)) (VP (VP (VB oversee) (NP (DT both) (JJ internal) (CC and) (JJ external) (NNS auditors))) (, ,) (CC but) (ADVP (RB also)) (VP (VB be) (ADJP (RB proactively) (VBN involved) (PP (IN in) (S (VP (VBG understanding) (NP (NP (NP (NNS issues)) (VP (VBN related) (PP (TO to) (NP (NP (DT the) (NN complexity)) (PP (IN of) (NP (DT the) (NN business))))))) (, ,) (CC and) (PRN (, ,) (FRAG (WHADVP (WRB when)) (ADJP (JJ appropriate))) (, ,)) (NP (NN challenge) (NN management))) (PP (IN through) (NP (NP (NN discussion)) (PP (IN of) (NP (NP (NNS choices)) (PP (VBG regarding) (NP (NP (JJ complex) (NN accounting)) (, ,) (NP (JJ financial) (NN reporting)) (, ,) (CC and) (NP (NN auditing) (NNS issues))))))))))))))) (. .)))
The committees that conduct audits need to challenge management when it is deemed appropriate.
( ( ( The committees ) ( that ( conduct audits ) ) ) ( ( need ( to ( ( challenge management ) ( when ( it ( is ( deemed appropriate ) ) ) ) ) ) ) . ) )
(ROOT (S (NP (NP (DT The) (NNS committees)) (SBAR (WHNP (WDT that)) (S (VP (VBP conduct) (NP (NN audits)))))) (VP (VBP need) (S (VP (TO to) (VP (VB challenge) (NP (NN management)) (SBAR (WHADVP (WRB when)) (S (NP (PRP it)) (VP (VBZ is) (VP (VBN deemed) (S (ADJP (JJ appropriate))))))))))) (. .)))