On the 2023 audit committee agenda: Consumer & Retail

Eight priorities for audit committees to focus on

2022 certainly gave us a mix of ups and downs in the Consumer & Retail (C&R) sector. The upside was a resilient consumer with a strong job market, improving supply chain conditions, and, of course, the emergence from the pandemic. The downside was rising input costs, a sustained inflationary environment, dipping consumer confidence, and a hawkish Federal Reserve.

On the 2023 audit committee agenda: Consumer & Retail
Eight priorities for audit committees to focus on

As we enter 2023, audit committees will have had no shortage of significant agenda items to address: the likelihood of a recession and rising interest rates; declining consumer spending; and continued deployment of new technologies, cloud transformations, and digitization to accommodate changing consumer buying behaviors. Meanwhile, environmental, social, and governance (ESG) priorities are gaining increasing attention, while supply chain reliability remains unsolved for most C&R organizations. And worker and talent shortages continue, although more in pockets than organization-wide.

Audit committees can expect their companies to be tested as the risk landscape becomes increasingly complex and interconnected.

We highlight eight issues for audit committee members to keep in mind as they consider and carry out their agendas for 2023.

  • Stay focused on financial reporting and related internal control risks— understanding that economic and market volatility are bringing impairment risks back on the table.
  • Understand the roadmap on implementing climate disclosure, broader ESG reporting, and remaining cautious of the risk of “greenwashing.”
  • Make sure data governance including cybersecurity and customer privacy are top of mind in a growing digital-first world.
  • Maintain a sharp focus on leadership, talent, retention, and new ways of working in the finance organization.
  • Ensure adequate time is provided to the macro-economic risks and inflationary impact on merchandise, pricing and promotion, and customer demand.
  • Maintain focus on business process and cloud transformation programs and related risks.
  • Stay apprised of global tax developments and risks and understand the importance of tax in supply chain and ESG.
  • Make sure internal audit is focused on the company's key risks in areas of change—particularly in technology and supply chain.

Contact us

Matt Kramer

Matt Kramer

National Sector Leader, Consumer & Retail, KPMG LLP

+1 614-241-4666
Susan M. Angele

Susan M. Angele

Senior Advisor, KPMG Board Leadership Center, KPMG US

Elizabeth Miller

Elizabeth Miller

Partner, National Audit Industry Leader, Retail, KPMG US

+1 212-954-3708
Allan Colaco

Allan Colaco

Partner, National Audit Industry Leader, Consumer Goods, KPMG US

+1 212-909-5629