Initiatives

Audit Committee Leadership Network in North America

A rising tide lifts all boats

Believing that a rising tide lifts all boats, members of the Audit Committee Leadership Network in North America are committed to improving the performance of their own and – through the publication of the ViewPoints synthesis of insights generated in their meetings – other audit committees.

Members are also committed to explaining the work of audit committees through dialogue with stakeholders like the Securities and Exchange Commission, the Financial Accounting Standards Board, the Public Company Auditing Oversight Board, and the investment community. The network is supported by Ernst & Young.

Network members also meet to explore common issues with other Tapestry networks such as the Compensation Committee Leadership Network and the European Audit Committee Leadership Network.

Recent network topics:

Investors’ perspectives on financial reporting

In a complex economic environment, the types of information investors need in order to value companies is continually evolving. Analysts told audit chairs that companies can do a better job at providing a consistent story to investors and enhance their reporting of important information such as cash flows, how revenue is generated, and on key performance indicators.

Addressing audit committee overload

Audit chairs said they were facing overload as the preparation for audit committee meetings had expanded. The audit committee itself is seeking to move some topics to other committees of the board to provide more time for risk management.

Regulatory compliance

Increasing regulation and stricter enforcement leads audit chairs to push companies to forge good relationships with regulators and enhance compliance functions.  Boards are testing different approaches to oversight of compliance, with audit committees often taking the lead.

Audit committee perspectives on the PCAOB

The Public Committee Accounting Oversight Board (PCAOB) could improve the audit by identifying best practices, helping auditors and audit committees.  The regulator was urged to consider unintended consequences as it develops standards on issues such as the disclosures in the auditor’s report.

Participant Profile

Judy Richards Hope 122

Judy Richards Hope
Audit Committee Leadership Network in North America

Audit Committee Chair, General Mills and Union Pacific

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