Audit committees can expect their company’s financial reporting, compliance, risk and internal control environment to be put to the test in the year ahead. Among the top challenges and pressures: long-term economic uncertainty (with concerns about mounting trade tensions, resurging debt, and market valuations), technology advances and business model disruption, cyber risk, regulatory scrutiny and investor demands for transparency, and political swings and policy changes in the U.S., UK, and elsewhere.
Drawing on insights from our interactions with audit committees and business leaders over the past 12 months, we’ve highlighted seven items that audit committees should keep in mind as they consider and carry out their 2019 agendas:
- Take a fresh look at the audit committee’s agenda and workload.
- Sharpen the company’s focus on culture, ethics, and compliance.
- Understand how the finance organization will reinvent itself and add greater value in this technology and data-driven environment.
- Monitor management’s progress on implementing new FASB standards as well as SAB 118 adjustments related to U.S. tax reform.
- Discuss the new reporting requirements for critical audit matters (CAMs) with the external auditor and reinforce audit quality by setting clear expectations for the auditor.
- Give non-GAAP financial measures, other key operating metrics, and cybersecurity disclosures a prominent place on the audit committee agenda.
- Focus internal audit on the company’s key risks beyond financial reporting and compliance.
View video: On the 2019 audit committee agenda