Audit Committee Brief

April 2021 issue

Audit Committee Brief is Deloitte's publication for audit committee members, providing recommendations, overviews of corporate governance resources, regulatory and legislative environment outlooks and technical updates.

On the Radar

Introducing On the Radar, a new series of executive-level overviews on subjects addressed in Deloitte’s Roadmap series, periodic collections of accounting guidance on select topics of broad interest to the financial reporting. Additional overviews will be published throughout the year.  

April 2021 issue

The Strategic Audit Committee: Navigating 2021

This CFO Journal article discusses a governance framework that can help audit committees organize processes and procedures that support their activities in times of calm and crisis. This article originally appeared in Deloitte Insights in CFO Journal from The Wall Street Journal on 23 March 2021. The Wall Street Journal News Department was not involved in the creation of this content.  

The CAQ releases an overview of ESG reporting and assurance

The Center for Audit Quality (CAQ) has released The role of auditors in company-prepared ESG information: A deeper dive on assurance, which provides an overview of auditors’ responsibilities related to environmental, social, and governance (ESG) information. This publication also details a range of assurance services useful for ESG, as well as questions board members can consider.  

Artificial intelligence and machine learning to mitigate fraud risk

This Anti-Fraud Collaboration publication, Fraud and emerging tech: Artificial intelligence and machine learning, examines how technology can help mitigate the risk of fraud.

PCAOB staff outlook for 2021 inspections and CAQ guide to PCAOB inspections

The PCAOB publication highlights changes in the inspection reports and provides insights for audit committees on current challenges and emerging topics. The CAQ provides an overview of these inspections, including the PCAOB’s responsibilities, how it conducts inspections and the content of inspection reports.

The CAQ updates its External auditor assessment tool

The CAQ has updated its External auditor assessment tool: A tool for audit committees, which includes sample questions to help audit committees appoint, oversee and determine compensation for the external auditor.

FASB staff releases a paper on ESG and accounting standards

The FASB staff has released Intersection of environmental, social, and governance matters with financial accounting standards for investors and other interested parties. The paper focuses on how ESG matters intersect with accounting standards and also provides examples on how companies may consider the effects of significant ESG matters when implementing the accounting standards.

ERP-enabled finance function can transform business

This CFO Journal article discusses how ERP-enabled finance transformation can help CFOs elevate the performance of the finance function that results in delivering a greater business impact. It takes stakeholder collaboration, a strong vision and a detailed road map to get there. This article originally appeared in Deloitte Insights in CFO Journal from The Wall Street Journal on 2 April 2021. The Wall Street Journal News Department was not involved in the creation of this content.

The PCAOB approves formation of a new standards advisory group

The PCAOB has approved the charter of a new Standards Advisory Group (SAG) that will allow investors and other stakeholders to advise the board on standards addressing auditing and attestation, quality control and ethics and independence. The charter provides that three members shall be either on the audit committee or the board of an entity that must have a PCAOB audit.

The SEC requests public input on climate-related and other ESG disclosures

This issue of Heads Up discusses the SEC’s activities related to ESG disclosures, including its recent request for input on climate change disclosures. Allison Lee, acting chair, asked to receive feedback by 13 June 2021 and noted that the 2010 interpretive release identifies four topics related to climate change that public companies should consider in their filings. The SEC also launched a landing page for ESG information.

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