Final answer:
The Treadway Commission's efforts increased the demand for auditor attestation on the effectiveness of internal control, especially after corporate governance failures like those at Lehman Brothers.
Step-by-step explanation:
The work of the Treadway Commission, specifically through the Committee of Sponsoring Organizations of the Treadway Commission (COSO), led to increased demand for auditors to provide attestation to the effectiveness of internal control over financial reporting. This initiative was partly in response to corporate scandals, such as Lehman Brothers, where corporate governance failed to offer accurate financial information to the investors. In the wake of such cases, ensuring effective internal control became paramount to restore trust and integrity in financial reporting.
The board of directors is meant to oversee corporate governance as the primary elected body by the shareholders. When the auditing firm steps in to certify financial records, and when outside investors, such as those who manage large mutual funds or pension funds, take an interest in the company's operations, these all form a trinity of corporate governance mechanisms. However, it was apparent in the case of Lehman Brothers that these mechanisms can sometimes fail, thus underlining the importance of rigorous internal controls and transparent financial disclosures.