Complexity, Speed of Changing Global Business and Risk Environment Will Test Audit Committees in 2013 Financial Reporting Integrity Is Job Number One; Digitization and Cyber Security, Global Regulatory Landscape Shaping Audit Committee and Board Agendas
NEW YORK, Jan. 9, 2013 /PRNewswire/ -- Audit committees face another challenging year in 2013, with continued economic uncertainty, globalization, digitization, and increased government regulation and enforcement reshaping the business and risk environment. Staying focused on job number one – financial reporting integrity – while addressing other key risks and oversight responsibilities will require thoughtful, prioritized agendas. To help audit committees and their boards meet the governance challenges of the coming year, KPMG's Audit Committee Institute (ACI) has published its "Audit Committee Priorities for 2013."
"The audit committee's agenda is not getting any lighter," notes Dennis T. Whalen, ACI's Partner in Charge & Executive Director. "Considering the scope and complexity of the risks and issues audit committees are facing, it's important to pause and reflect on what the committee's agenda should look like and how that agenda is carried out."
Recognizing that companies and boards face different challenges, and that priorities will vary, KPMG's "Audit Committee Priorities for 2013" include the following:
- Stay focused on job #1: Financial accounting & reporting and internal controls.
- Reinforce audit quality and set clear expectations for the external auditor.
- Monitor the impact of the business and regulatory environment on the company's compliance programs.
- Understand the company's significant tax risks and how they are being managed.
- Make sure internal audit is properly focused and fully utilized.
Beyond these key oversight responsibilities, audit committees also can play an important role in supporting the board (and coordinating with other board committees) on the following governance matters:
- Consider whether the board has the right composition and committee structure to provide effective risk oversight.
- Understand how digitization and social media are transforming the business landscape—and impacting the company and board oversight.
- Set the tone and closely monitor leadership's commitment to that tone, as well as the culture throughout the organization globally.
Read the full text of KPMG's Audit Committee Priorities for 2013.
About KPMG's Audit Committee Institute
ACI provides audit committee and board members with practical insights, resources, and peer-exchange opportunities focused on strengthening oversight of financial reporting and audit quality, and the array of challenges facing boards and businesses today – from risk management and emerging technologies to strategy and global compliance. Learn more about ACI's Audit Committee Roundtable Series, Annual Issues Conference, Quarterly Audit Committee Webcast, and other educational resources for directors at www.KPMG.com/ACI.
About KPMG LLP
KPMG LLP, the audit, tax and advisory firm (www.kpmg.com/us), is the U.S. member firm of KPMG International Cooperative ("KPMG International.") KPMG International's member firms have 145,000 people, including more than 8,000 partners, in 152 countries.
SOURCE KPMG LLP