Choose an area of interest:

Choose an area of interest:
Accounting | A & A | Corporate Finance | Ethics & Compliance | Financial Planning | HR & Training | International | Legal | Students | Tax | Tech

KPMG Recommends 10 Audit Committee To-Dos

Feb. 1, 2008 (SmartPros) The KPMG Audit Committee Institute has compiled a list of 10 things audit committees need to do in 2008.

According to the Institute, committees not only need to understand the implications of important financial reporting issues, such as Fair Value Accounting, and convergence of U.S. GAAP and IRFS, but they must also make sure the CFO and the corporate finance organization has what it needs to succeed.

Other items for audit committees to consider this year include being a catalyst for improving risk management, closely monitoring management's disclosure committee, and being prepared for a crisis.

Additionally, audit committees still see risk management as a real challenge for many companies and boards, while there is a growing interest among audit committees to focus more on their relationship with, and support of, the CFO and financial management team, according to the results from a recent survey of participants at the KPMG Audit Committee Institute's Fall 2007 Roundtable Series.

The list is available in a two-page PDF. In summary, the 10 recommendations are:

  1. Be a catalyst for improving risk management and oversight.
  2. Closely monitor management's disclosure committee.
  3. Be up-to-speed on fair value, IFRS, and other key financial reporting issues and developments.
  4. Make sure the CFO and the finance organization have what they need to succeed.
  5. Ensure there's a shared vision for internal audit.
  6. Encourage (expect) frequent, informal communications with the audit engagement partner.
  7. Be prepared for a crisis.
  8. Make sure the full board is aware of the audit committee's activities and needs.
  9. Assess the tone at the top and throughout the organization.
  10. Take a hard look at the audit committee's performance.


2008 SmartPros Ltd. All rights reserved.

Related Stories
This Week in the SmartPros News & Insights Newsletter

Would you recommend this article?
5 (yes, highly)
1 (no, not at all)

About SmartPros | Accounting Products | Professional Education | Marketing Services | Consulting | Engineering Products | PE Review Course | Contact Us
Copyright 2015 Kaplan, Inc. | All rights reserved.