Audit committee challenges and priorities in the upcoming quarter and beyond has been saved
Audit committee challenges and priorities in the upcoming quarter and beyond
On the audit committee’s agenda, October 2020
On the audit committee's agenda is a new series of periodic audit committee-focused publications that examines topics impacting the audit committee’s responsibilities and priorities through perspectives from Deloitte subject matter specialists.
Does it feel like Groundhog Day? On a personal level, it may feel like each day blends into the next, and many of us find ourselves waiting for the current conditions to pass so things can get back to normal. But companies can’t simply take a wait-and-see attitude. They need to respond quickly to the change in the business landscape, both internally (e.g. forecasting, systems and process) and externally (e.g. communication with stakeholders, go-to-market strategies). It’s not only about how long the current environment will last, but how to position the company in the current environment and prepare for the “new normal”. If companies stay the course and don’t evolve during the pandemic, they are likely to fall behind competitors.
Audit committees have a critical role in helping companies evolve and thrive in this environment. To provide effective oversight and help company executives navigate these challenging times, audit committees need to ask direct, targeted questions of management to understand what alternatives were considered and chosen in addressing key issues. Audit committees should be aware of issues that are top of mind, trending, and ongoing, as well as the tension points, challenges and alternative solutions associated with those issues.
The enclosed publication explores financial reporting considerations that should be top of mind for audit committees in the current environment. Questions for audit committees to ask on topics such as forecasting, communications with stakeholders and internal controls are included.