Audit committees continue to express confidence in their oversight of core responsibilities—financial reporting integrity and audit quality. Yet, it’s clear from our survey of more than 200 audit committee members that technological innovation, digital disruption, and the complexity of business are exerting greater pressure and sharpening the focus on risk management and the internal control environment.
Five key takeaways emerged from the survey results:
- Helping ensure that the finance organization has the talent and skills to maintain quality financial reporting is one of the audit committee’s greatest challenges.
- Cybersecurity continues to be a top concern.
- Few are confident that their company’s current enterprise risk management processes capture “disruptive risks.”
- Internal audit can maximize its value by maintaining flexibility to adjust the audit plan in response to changing business and risk conditions.
- Few audit committee members say that companies should continue to provide quarterly earnings guidance.