On the 2017 audit committee agenda | KPMG | CN

On the 2017 audit committee agenda

On the 2017 audit committee agenda

Eight items for audit committees’ 2017 agendas, based on KPMG’s insights from surveys, and interactions with audit committees and business leaders

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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 US, UK and elsewhere. Focused, yet flexible agendas – exercising judgement 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, we have highlighted eight items that audit committees should keep in mind as they consider and carry out their 2017 agendas:

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

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