CE-101 CREATING AN EFFECTIVE AUDIT COMMITTEE

CE-101 CREATING AN EFFECTIVE AUDIT COMMITTEE

DESCRIPTION

The expectations of audit committees are higher than ever. Members are expected to be proactive, informed, investigative, and accountable. Stakeholders rely on audit committees to execute their oversight duties while keeping up with an increasingly complex financial reporting environment and an ever-changing regulatory landscape. The audit committee should provide oversight of financial reporting, risk management, internal control, compliance, ethics, management, internal audit, and external auditor.  Setting the appropriate tone at the top has never been more important for audit committees or boards as a whole. This course covers best practices of core responsibilities and functions of the audit committee and provides tools and techniques to help audit committee members manage their responsibilities and heighten awareness of governance issues to increase the audit committee effectiveness.  The course will help organizations establish an effective audit committee based on current best practices.

LEARNING OBJECTIVES

  • Understand the role and responsibilities of the Audit Committee as part of governance, risk and compliance
  • Review and consider the essential features of effective audit committees
  • Examine the specific responsibilities of the audit committee
  • Have a greater understanding of the legal, regulatory and professional obligations for audit committees

 

COURSE OUTLINE

Audit Committee Member Roles and Responsibilities

  • Audit Committee process and procedures
  • Oversight of the financial reporting process
  • Oversight of financial reporting
  • Background
  • Responding to the identification of a material weakness
  • Steps the Audit Committee should take if faced with an adverse report on internal controls
  • Oversight of the independent external auditor
  • Oversight of the internal audit function
  • Oversight of risk management
  • Oversight of ethics and compliance
  • Limitation of the Audit Committee’s role
  • Audit Committee charter matrix
  • Internal control over financial reporting
  • Internal control—checklist of COSO essentials for the Board

Selecting and Working with CPA Firms

  • Services to be performed
  • Relationship with CPA service provider
  • Evaluation of proposals
  • Peer review of a CPA firm
  • Public company accounting oversight board inspection

Hiring the Chief Audit Executive (CAE)

  • Role of the Audit Committee in hiring and evaluating the CAE
  • CAE qualifications
  • Relationship with the CAE

Fraud and the Responsibilities of the Audit Committee

  • Definition and categories of fraud
  • Prevention, deterrence, investigation, and discovery or detection of fraud responsibilities
  • Expertise of forensic accounting consultants

Whistleblower Policy:

  • Complaint Reporting Procedures
  • Tracking Guidelines and Questions for
  • Conducting an Audit Committee Executive Sessions
  • Tools for Audit Committee members
  • Evaluating the internal audit function
Duration

CPE

Delivery

Field

Level

Who Should Attend

Prerequisites

Advanced Preparation

1 Day

8

Group-Live

Auditing

Advanced

Audit Committee and Board Members

A working knowledge of accounting and financial statements

None