As the role of the audit committee continues to evolve, it becomes increasingly important for audit committee members to remain up to date and aware of changes to their responsibilities. Deloitte is committed to providing audit committee members with resources and leading practices to help fulfill their responsibilities.

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PCAOB Proposes New Framework for Reorganization of PCAOB Auditing Standards

Deloitte's Heads Up discusses the PCAOB's recently issued release that includes a proposed framework for the reorganization of PCAOB auditing standards. Under the proposed framework, PCAOB Auditing Standards 1-16 and PCAOB interim standards would be reorganized into a topical structure (based on the audit process) by using a four-digit sequential numbering scheme. Comments on the release are due by May 28, 2013. 

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Enhancing The Audit Committee Report: A Call to Action

A consortium of governance and policy organizations including the National Association of Corporate Directors, the Center for Audit Quality, and others, outline how audit committees can enhance communication with investors to provide a clearer picture of the committee's activities.

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Posted with permission from The Audit Committee Collaboration, copyright 2013

Key Responsibilities of the Audit Committee Include:

  • Having an effective relationship with management, the internal auditors, and the independent auditor
  • Taking a "risk-intelligent" governance approach
  • Overseeing the establishment of appropriate controls and antifraud programs
  • Overseeing dissemination of earnings press releases, financial information, and earnings guidance
  • Monitoring a robust code of ethics
  • Establishing a process for investigating allegations, especially those against senior management.

Audit Committee Composition Considerations

  • Focus on committee composition, including independence, financial expertise, broad business or leadership perspective, industry knowledge, and succession planning.
  • Consider rotating audit committee members periodically.
  • Engage independent advisers to help evaluate the audit committee’s performance when necessary.

Audit Committee Effectiveness Center

The AICPA presents the guidance and tools to make audit committee best practices actionable.

The AICPA Audit Committee Toolkit: Public Company

Posted with permission. Copyright 2004 by the American Institute of Certified Public Accountants, Inc., New York, New York.