The CFO taking on the role of a coach: While the
audit committee should be comprised of individuals with significant experience in accounting matters, the CFO must sometimes take the role of coach, helping
audit committee members understand how an accounting standard applies in that industry or that company.
Companies committing financial statement fraud were small in size (median assets, $16 million), had senior executives involved in the fraud, and had a board of directors and
audit committee that were not functioning properly.
The American Institute of Certified Public Accountants (AICPA) has published a "how-to" guide for audit committees--the AICPA
Audit Committee Toolkit--to help
audit committees meet the responsibilities mandated by the Sarbanes-Oxley Act of 2002.
The MTC
Audit Committee is composed of representatives from the states in the MTC Audit Program.
Recent actions by the SEC and the recommendations of the Blue Ribbon Committee on Improving the Effectiveness of Corporate
Audit Committees (BRC) have highlighted the need for the
audit committee to oversee and review all economic relationships between the external auditors and management.
For publicly traded corporations, these participants normally include the board of directors, the
audit committee of the board, senior management, the internal auditor, and the outside independent auditor.
Regarding
audit committees, 84 percent of respondents agreed that a report by
audit committees should be included in the company's annual report, 53 percent said that
audit committees lacked sufficient accounting knowledge, and 98 percent favoured a structured training course for
audit committee members.
Regarding
audit committees, 84 percent of respondents agreed that a report by
audit committees should be included in the company's annual report, 53 per cent said that
audit committees lacked sufficient accounting knowledge, and 98 per cent favoured a structured training course for
audit committee members.
A report on research into the effect of
audit committees in the March 2018 CPA Journal (April Klein, "Questioning the Effectiveness of Independent
Audit Committees: Does the Current Regulatory Regime Improve Reporting Quality?" http://bit.1y/2LFI6mg) describes measuring various market and other effects of the
audit committee and finding none:
The
Audit Committee of the Company's Board of Directors has commenced an internal investigation in connection with concerns raised by a former employee.
M2 EQUITYBITES-January 30, 2018-Robit's board names members of
audit committee