Audit Committee Brief
Monthly publication that provides audit committee members with recommendations, overviews of corporate governance resources, regulatory and legislative environment outlooks, and technical updates.
Highlights from the AICPA’s 2014 Conference on Current SEC and PCAOB Developments
Issue 1 - 2015
Audit quality initiatives, internal control over financial reporting, disclosure effectiveness, standard-setting initiatives, and IFRS were frequent topics of discussion at the 2014 AICPA conference. SEC staff and members of the PCAOB, FASB, and IASB provided updates on recent developments and offered a glimpse into their rulemaking and initiatives for the coming year. This issue of the Audit Committee Brief highlights topics and insights from the conference that were particularly relevant to audit committees and provides links to additional resources for further information.
What’s on your agenda for 2015?
The depth and range of the audit committee’s duties are greater than ever, and it has become increasingly important to prioritize the agenda and allocate time appropriately. While the responsibility to oversee financial reporting and compliance and to monitor management activities remains fundamental, items such as information technology, globalization, regulatory matters, risk oversight, and tax issues have recently played a significant role in many audit committees’ activities, and this is likely to continue in 2015. This edition of the Audit Committee Brief highlights several prominent and timely issues likely to be high priorities for audit committees in 2015, and provides considerations and questions to ask regarding these topics, as well as resources for further information.
Internal Audit: Moving beyond Sarbanes-Oxley Compliance
Among the most common expectations of internal audit is to gain assurance on financial controls, the reliable execution of audit plans, and coordination with the external auditor. But given the lack of specific guidelines or requirements regarding internal audit’s responsibilities, there is a broad range of practice based on organizational needs, structure, and culture. Audit committees can play an important role in confirming the whole organization is on the same page regarding the goals for internal audit, and in providing a strong avenue of communication for the chief audit executive to share concerns and perspectives. This issue of the Audit Committee Brief focuses on the evolving role of the internal audit function, and provides considerations for how audit committees can effectively work with management and internal audit to maximize the value of the function in the context of a company’s specific circumstances.
Finance Talent: Building Sustainable Leadership
The competition for top-performing finance talent remains strong. Effectively identifying and onboarding senior finance professionals, monitoring their career development, and managing the pipeline of future leaders can help sustain an organization’s success. Executive succession and development are often the responsibility of the full board. However, the audit committee may consider becoming involved in overseeing the finance organization, keeping the quality and reliability of financial accounting and reporting and related controls at the forefront.
Update on Regulatory Issues Affecting Audit Committees
Audit quality, transparency, auditor retention, and other financial reporting matters relevant to audit committees have been on regulators’ agendas in recent months. The SEC, PCAOB, and other regulatory bodies are actively soliciting the audit committee’s views on various topics and initiatives, and have released a variety of publications, communications, and resources targeted to committee members. This issue of the Audit Committee Brief discusses recent domestic and international regulatory developments that are likely to affect audit committees, and includes links to a variety of resources for further information.
Life at Deloitte
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