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Effective regulations should not diminish the role of audit committees, which are experienced in making crucial judgments. It is vital to allow audit committees to continue exercising judgment in the interest of shareholders. Strict regulations could strip audit committees of their ability to make key judgments, which would be unfortunate. Imposing rules from the outside does not undermine audit committees' decision-making processes. Audit committees have been proactive in deciding what audit firms should and should not do.
