Deloitte’s Center for Board Effectiveness has released an updated version of its Audit Committee Guide (Guide). In the press release announcing the updated Guide, the Center describes it as “providing a first-hand look at the latest requirements and an explanation of the shifting roles and responsibilities of audit committee members, especially in emerging areas such as environmental, social, and governance issues, including cybersecurity.” The announcement also states that the enhanced Guide can serve as a resource for audit committee members on such topics as:
How audit committees can fulfill their responsibilities to oversee financial reporting, risk, internal auditors, independent auditors, and ethics and compliance.
How audit committees can fulfill their responsibilities to oversee financial reporting, risk, internal auditors, independent auditors, and ethics and compliance.
To what extent committee composition meets the requirements of the SEC, NYSE, and Nasdaq with respect to independence and financial literacy.
How an audit committee's charter aligns with current listing requirements, especially as the committee's responsibilities may have shifted in recent years.
Common practices and considerations with respect to performing committee evaluations and self-assessments.
How committees can improve their overall effectiveness.
The Guide is divided into three sections –
Audit committee requirements discusses the required structure and composition of the audit committee as well as requirements for charters, independence, financial expertise, and literacy, and evaluating performance.
Audit committee oversight responsibilities covers the audit committee’s responsibility to over-see financial reporting and related internal controls, risk, ethics and compliance, and auditors.
Audit committee effectiveness addresses leading practices audit committees can consider in preparing for and conducting meetings and in executing their oversight responsibilities.
Each section of the Guide includes questions that committees may wish to ask to promote dialogue on the topics covered in the publication. In appendices, the Guide presents a sample audit committee charter, an audit committee calendar of activities, and an audit committee performance evaluation questionnaire.