EY - Audit Committee Bulletin: June 2014

Audit Committee Bulletin

June 2014

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This issue addresses the risk and governance topics that are top of mind for audit committee and board members across Europe and beyond.

Investor / audit committee engagement: Investors have started taking a greater interest in audit policy and practices and the European audit market reforms. Many investors actively seek direct engagement with audit committees. Learn what they expect and how to improve your audit committee / investor relationship.

Reputational threats drive audit committee concerns about social media: Boards and audit committees are taking a more active oversight role in managing social media risks. However, they often overlook the opportunities social media presents.

EY infographic showing key results of the EY Forensic Data Analytics Survey 2014

Mining big data to mitigate corruption risk: Companies are missing chances to mine big data to reduce fraud risk and improve anti-bribery compliance, according to our recent survey.

Audit committees struggle to find balance of skills: Audit committees now regularly look beyond financial data reports to focus on an organization’s ethics and quality of procedures. New areas of responsibility may include oversight of international operations, litigation and investigations, cybersecurity and the impact of political shocks. These expanded responsibilities have put new emphasis on the importance of including non-financial expertise and soft skills within the group.

Choosing an auditor: In many companies, the audit committee takes the lead in choosing a new auditor. The selection process can be complicated and time-consuming, but also presents an opportunity to challenge the status quo and improve the quality of the audit. Members of the European Audit Committee Leadership Network recently discussed their most important auditor selection criteria and points to consider. We give you a short summary of their conclusions.

A successful auditor rotation depends on planning: The clamor for greater transparency around the audit-client relationship has led to a new approach in corporate reporting and raised the levels of auditor rotation. More audit chairs are finding themselves managing an audit firm transition — often for the first time. We cite some ways in which audit chairs can help foster a smooth transition.

Survey reveals top audit committee issues: A November 2013 survey asked EY partners across Europe, the Middle East, India and Africa which issues were on the minds of the audit committees they serve, and how audit committees were spending their time.

Audit committees' concerns for 2013

EY infographic showing key audit committee concerns in 2013

Audit committees’ concerns for 2013

EY infographic showing key audit committee concerns in 2013 ×