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Audit Committee Guide: International Considerations for Audit Committees
Audit committees are a crucial component of modern corporate governance. As a subcommittee of the board*, they hold both the organization and the board itself accountable to stakeholders.
As well as providing critical oversight around their company’s corporate reporting processes, audit committees oversee internal controls, risk management and the external audit process. Additionally, they may have responsibilities in relation to cybersecurity, taxation and legal compliance, among other areas. In fact, their remit is wide, varied and continually evolving – as we see currently with the advent of mandatory sustainability reporting and assurance in many markets.
Being an audit committee member is an important and often pressured job that requires a substantial time commitment. The nature of the work demands that audit committee members are diligent and proactive, with independent mindsets. They should be willing and capable of asking hard questions of management, as well as tenacious in their pursuit of answers. Additionally, they need to support and challenge those who report to them, including internal and external auditors.
This guide aims to help new audit committee members get to grips with their role. It explains what it means to be a member of an audit committee, which responsibilities they will have, where they can add value, and how they can work effectively with their colleagues as part of a highly performing leadership team. Thanks to its jurisdiction agnostic approach, the guide is relevant irrespective of where an individual audit committee member is based.
By providing a broader overview of the audit committee’s role, this guide will also be useful to existing audit committee members who are looking to refresh their knowledge and skills. Furthermore, it will be a valuable aid to anyone who is interested in finding out more about how audit committees contribute to effective corporate governance.
