The role of the audit committee in corporate governance is more important than ever. As an audit committee member, your journey will be filled with many stops along the way.
In this resource guide, we help you understand your role and responsibilities. We also provide helpful tools, including examples of an audit committee charter, an audit committee report, a financial expertise questionnaire, a meeting planner and a self-assessment tool. In addition, the Questions section includes inquiries you can make of management, internal audit professionals or the independent auditors.
The SEC requires that every US company listed on an exchange have an audit committee or its equivalent as part of its board of directors. As an audit committee member, it’s important to understand the rules and regulations designed to guide audit committee members in the performance of their oversight role.
With so many responsibilities, it is important to stay on track. To perform their oversight responsibilities, audit committee members need to collect the right information, analyze it carefully, ask appropriate questions and make informed decisions.
Volatility and complexity are not going away. Boards and audit committees need to constantly challenge their processes and make sure they have the right competencies around the table.
Audit committee members, particularly those new to the committee, need sufficient training and education to fulfill their responsibilities. At a minimum, the education programs should provide an overview of the company, cover the role of the audit committee and convey the expected time commitment of the position. Any new audit committee member also should meet with senior management, controllers, business unit leaders, internal audit, external audit and other committee members.