Our audit committee surveys allow us to identify the key challenges and concerns facing audit committees and boards. The results help shape our suggested agendas to aid board and audit committee planning.
At our recent ACI Autumn Technical updates in late 2016, we asked attendees to anonymously rate various aspects of audit quality for their organisation’s most recent financial year. The areas looked at included the auditor’s focus on risk assessment, quality management, demonstration of challenge, level of independence and communication.
KPMG’s survey of more than 800 audit committee members worldwide offers insights that audit committees around the globe can use to sharpen their focus, benchmark responsibilities and practices, and strengthen oversight.
In 2017, corporate growth and shareholder return will still require the essentials - managing key risks, innovating and capitalising on new opportunities, and executing on strategy. But the context for corporate performance is changing quickly - and perhaps profoundly. Drawing on insights from our recent ACI pulse surveys and interactions with directors and business leaders over the past 12 months, we have highlighted seven items that, in our opinion, boards should keep in mind as they help guide the company forward in the year ahead.
Financial reporting, compliance, and the risk and internal control environment will continue to be put to the test in 2017. 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 ACI pulse survey work and interactions with audit committees and business leaders over the past 12 months, we have highlighted seven items that, in our opinion, audit committees should keep in mind as they consider and carry out their 2017 agendas.
We surveyed 32 FTSE350 audit committee chairs who had changed auditors as a result of a tender during the last three years. We asked questions about the transition process, handover from one auditor to another, impact on the business, the degree to which tender ‘promises’ had been delivered and the challenges of transition.
Regular audit tendering and rotation is now a reality. During our recent series of ACI Technical Updates we took the opportunity to explore the perceived risks and benefits of changing the external auditor with around 150 audit committee members.
KPMG surveyed more than 2,300 directors and senior executives globally to better understand how directors achieve the right mix of personnel in the boardroom.
Some of the key findings from the global survey include:
The increasing volatility and complexity of the global business and risk environment – conflict in the Middle East, slowing growth in China and emerging markets, volatility in commodity prices and currencies, interest rate uncertainty, and more – raise an important question for every global audit committee. How is this global volatility and uncertainty affecting the committee’s agenda?
Prioritising a heavy audit committee agenda is never easy, and 2016 will be particularly challenging given the level of global volatility and uncertainty – e.g. the geopolitical environment, commodity prices, interest rates, currency fluctuations, slowing growth in emerging markets – as well as technology advances disrupting established industries and business models. Drawing on insights from interactions with audit committees and business leaders over the past year, we flag ten items for audit committees to keep in mind as they consider and carry out their 2016 agendas.
The road ahead for companies in 2016 will be particularly challenging given the level of global volatility and uncertainty. In this environment, the spotlight on corporate directors will continue to intensify as investors and regulators scrutinise the board’s involvement in strategy, risk, and compliance. In our briefing, ‘On the 2016 Board Agenda’, we draw attention to six broader themes that boards might keep in mind as they consider and carry out their 2016 agendas.
KPMG surveyed more than 1,000 directors and senior executives internationally to better understand how boards are helping their companies calibrate strategy and risk. Our survey explored where boards are deepening their engagement and where the biggest challenges and concerns exist.
Our research suggests that while many boards are clearly stepping up their game, significant challenges remain.
We hope our findings and observations, from interviews and interaction with directors, are helpful as you assess and calibrate your company’s approach to strategy and risk.
To help identify the key challenges and concerns facing audit committees, boards, and their companies today, KPMG’s Audit Committee Institute surveyed around 1,500 audit committee members in 36 countries.
Our survey identifies broad international trends and provides detailed country data on audit committee challenges and concerns in different geographies.
A range of timely issues were explored including:
See also our 2014 Global Audit Committee Survey