Audit Committee

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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Audit Committee Brief, May 2013

The Road to Convergence

The FASB and IASB have collaborated for several years on an initiative to improve, streamline, and converge key accounting standards. Among the significant areas being addressed are revenue recognition, financial instruments, and lease accounting. When finalized, these new standards have the potential to dramatically change the way companies account for many of their most common transactions. This Audit Committee Brief highlights recent standard-setting developments and includes questions audit committees should consider in preparing for changes.

Publication date: 4/2013 | File size: 668 KB

Audit Committee Resource Guide

Deloitte's Audit Committee Resource Guide helps audit committee members and management better understand the requirements, roles, and responsibilities of the audit committee. Supporting tools, including a sample charter and planning tool for an audit committee's calendar of activities, are available on our Audit Committee Resource Guide page.

Publication date: 1/2013 | File size: 508 KB

Audit Committee Leading Practices and Trends

This document summarizes certain leading practices for audit committees. It can be used to assess audit committee practices and to discuss agendas and other considerations with the audit committee chairperson.

Publication date: 1/2013 | File size: 53 KB

Tone at the Top

Eight Priorities for 2013

This issue of Tone at the Top explores eight key risks and opportunities for organizations to keep on their radar for 2013 including, crisis management, fraud and ethics, regulatory compliance, social media, employee talent management, emerging technology, enterprise risk management, globalization and geopolitical risk.

Publication date: 1/2013 | File size: 421 KB

Posted with permission from the December 2012/January 2013 issue of Tone at the Top, a publication of The Institute of Internal Auditors.

Audit Committee Brief, January 2013

Highlights from the AICPA’s 2012 SEC and PCAOB Conference

Auditor and audit committee communications, inspection findings, transparency, and audit quality were among the major topics at the 2012 AICPA National Conference on Current SEC and PCAOB Developments. This issue of the Audit Committee Brief summarizes conference topics and themes that are of particular relevance to audit committee members.

Publication date: 12/2012 | File size: 1.5 MB

PCAOB Proposes New Framework for Reorganization of PCAOB Auditing Standards

The latest issue of 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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December 17, 2012: SEC Passes AS 16

AS 16 States That The Objectives of the Auditor are to:

Communicate to the audit committee the responsibilities of the auditor in relation to the audit and establish an understanding of the terms of the audit engagement with the audit committee;
Obtain information from the audit committee relevant to the audit;
Communicate to the audit committee an overview of the overall audit strategy and timing of the audit; and
Provide the audit committee with the timely observations arising from the audit that are significant to the financial reporting process.

For further information refer to the Heads Up on the proposed rule issued on September 18, 2012.

SEC Comment Letter, November 2012

Learn about Deloitte’s perspective on the topics the SEC staff focused on in its comment letters to registrants in 2012. Highlights below:

Implementation of Dodd-Frank Act and JOBS Act continued to be a major focus for SEC in 2012
SEC finalized rules affecting swaps and derivatives clearing, conflict minerals, and extractive issuer payments.
SEC staff released FAQ about various topics related to JOBS Act.
SEC staff issued final report on incorporation of IFRSs.

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.