We summarize key considerations for audit committees as they seek to enhance oversight in these uncertain times.
As audit committees (ACs) prepare for the upcoming interim reporting period, there will be a strong focus on material matters and changes to key performance indicators of financial condition and operating performance. ACs will also need to determine if there are appropriate processes in place to evaluate new and emerging legislative, administrative and regulatory developments for impacts on reporting and disclosures.
In addition, the Singapore Exchange (SGX) has previously emphasized that broad-stroke explanations attributing to a decline in general economic activity to account for the company’s outlook would be deemed inadequate and of little utility to shareholders.
Given the magnitude of the economic impact of the COVID-19 pandemic, preparing the 2021 interim financial statements is likely to involve more than the usual update as stakeholders may expect information beyond what is typically disclosed.
We summarize matters for consideration in this issue to help ACs as they seek to enhance oversight during these uncertain times.
