on the 2017 audit committee agenda | KPMG | BM

On the 2017 audit committee agenda

On the 2017 audit committee agenda

Drawing on insights from our survey work and interactions with audit committees and business leaders, we’ve highlighted eight items that audit committees should keep in mind as they consider and carry out their 2017 agendas.

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on the 2017 audit committee agenda

Financial reporting, compliance, and the risk and internal control environment will continue to be put to the test in 2017 by slow growth and economic uncertainty, technology advances and business model disruption, cyber risk, greater regulatory scrutiny, and investor demands for transparency, as well as dramatic political swings and policy changes in the U.S., UK, and elsewhere. Focused, yet flexible agendas—exercising judgment about what does and does not belong on the committee’s agenda and when to take deep dives—will be critical. Drawing on insights from our recent survey work and interactions with audit committees and business leaders over the past 12 months, we’ve highlighted eight items that audit committees should keep in mind as they consider and carry out their 2017 agendas.

  • Reinforce the audit committee’s direct responsibility for the external auditor.
  • Give non-GAAP financial measures a prominent place on the audit committee agenda.
  • Monitor implementation plans and activities for major accounting changes on the horizon—particularly the new revenue recognition and lease international accounting standards.
  • Monitor key regulatory initiatives to enhance transparency of the audit process.
  • Redouble the company's focus on ethics, compliance, and culture.
  • Focus internal audit on key areas of risk and the adequacy of the company’s risk management processes generally.
  • Quality financial reporting starts with the CFO and finance organization; maintain a sharp focus on leadership and bench strength.
  • Make the most of the audit committee’s time together—inside and outside the boardroom. 

Read: On the 2017 Audit Committee Agenda for more.

See also: On the 2017 Board Agenda

© 2017 KPMG, a group of Bermuda limited liability companies which are member firms of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

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