Best Practices: Audit Committee

The purpose of this seminar is to provide each attendee with a high-level understanding of the Audit Committee's major fiduciary oversight and responsibilities concerning:

• Financial Closing and Reporting Process

• Risk Management Process

• Internal Control over Financial Reporting (ICFR)

• External Auditor Services

• External Accounting and Internal Audit Services

• Key Governance Controls

• Alternative Communication Controls

• Special Investigations

• Audit Committee Management and Reporting Responsibilities

 

Best Practices for the Audit Committee was developed from numerous sources of authoritative information on the function. Please refer to the following webpage for a summary of these sources

What you will hear at this seminar is:

• The most important recent developments for audit committees

• The governance role of the Audit Committee

• Effective oversight of Internal Control over Financial Reporting (ICFR)

• Effective oversight of the external auditor

• External Accounting and Internal Audit Services

• Key Governance Controls

• Alternative Communication Controls

• Special Investigations

• Audit Committee Management and Reporting Responsibilities

Introduction

Section 1 - What defines an audit committee?

• What is an audit committee?

• Boards and sub-committees

• Audit committee charter

• Good corporate governance

Section 2 - The Influence of an Audit Committee

• Audit committee responsibilities

• Attributes of audit committee directors

Section 3 - Audit Committee Challenges

• The "Enron" approach

• Dependence on expertise and integrity

• Quality of auditor services

• Compliance programs

Section 4 - Risk, Fraud and Internal Control

• Does the organization have weak controls?

• Tone at the top

• What is internal control?

• COSO 2013

• Financial statement risk

• "Risk Management"

Section 5 - Impact of the Sarbanes-Oxley Act

• Sarbanes-Oxley Act

• Public Company Accounting Oversite Board (PCAOB)

• Management's certifications

Section 6 - Financial Statement Review
Building knowledge
"Materiality" and "Misstatements"
Financial statement estimates

Section 7 - Managing the Relationship with Auditors
- PCAOB Auditing Standard # 16
- Management vs. auditor responsibilities
- Evaluating auditor capabilities
- Why require Internal Audit?
- What Should an Internal Auditor Do?

Section 8 - Compliance and Ethics
- Responsibilities for ethical behavior
- "Culture of Compliance"

Section 9 - Audit Committee Reports and Assessments
- Audit committee self-assessment

Section 10 - Going Forward

Program Level of Understanding: Basic

Prerequisites: None

Advance Preparation: None

Delivery Format: Group Internet Based

NASBA Field(s) of Study: Auditing

CPE Credits: 2, based on 50 minutes of instruction per hour

The CPE event "Best Practices: Audit Committee - In-person" focuses on providing comprehensive insights into the best practices for conducting in-person audit committee meetings. The event delves into the key considerations and protocols essential for ensuring the effectiveness and efficiency of audit committee meetings within organizations.

Key topics covered in this event may include:

• Meeting Agenda Design: Guidance on structuring a well-defined meeting agenda, emphasizing crucial areas of discussion and decision-making within the audit committee's purview.

• Risk Assessment and Oversight: Insight into the best practices for risk assessment and oversight, enabling the audit committee to fulfill its crucial function in mitigating organizational risks.

• Financial Reporting and Compliance Updates: Updates on financial reporting requirements and compliance standards, equipping committee members with the latest industry knowledge.

• Internal Controls Evaluation: Best practices for evaluating internal controls, ensuring robust governance and risk management frameworks.

• Communication and Collaboration: Strategies for fostering effective communication and collaboration among audit committee members, management, and external auditors.

By addressing these critical aspects, the CPE event aims to empower audit committee members with the knowledge and tools necessary to fulfill their responsibilities effectively, ultimately contributing to improved governance and risk management within their organizations.