Tapestry Networks - Canadian Audit Committee Network

Canadian Audit Committee Network

The Canadian Audit Committee Network is a regional extension of the Audit Committee Leadership Network in North America. The Canadian ACN is a group of audit committee chairs from leading companies headquartered in Canada.

Convened by Ernst & Young and produced by Tapestry Networks, the Canadian ACN meets three times a year. Its private dialogues help develop practical insights and solutions to enhance the functioning of financial markets and strengthen relationships among the firm, leading companies, and their directors.

Thought leadership created in Canadian ACN dialogues is captured and published by Tapestry to a wider audience in VantagePoint. Recent issues of VantagePoint from the Canadian ACN include:

The business case for systematic risk management (PDF) - March 2, 2010
The Canadian Audit Committee Network met on January 19 in Toronto to discuss risk management and reporting processes at their companies. Members shared samples of risk reports and discussed elements of risk management processes and how they are reviewed by the board and the audit committee. But much of the discussion focused on why it is important to have systematic risk management processes in place by forcing a discussion of difficult-to-measure risks, creating a risk-aware culture, focusing attention on the interconnected nature of risks, and assigning ownership of risk management. It also enables boards to constructively challenge management.
[Click here for French version.]

IFRS Update (PDF) - March 2, 2010
A portion of the meeting was also devoted to an update on how companies are transitioning to International Financial Reporting Standards from Canadian Generally Accepted Accounting Principles. Members report significant process since the network met in September, but challenges remain including: engaging the full board, ensuring the audit committee and the board fully understands the accounting decisions management is making, communicating to the market about the impact of transition, ensuring audit committee members are educated in the new standards, and understanding the status of conversion in the United States. [Click here for French version.]

Setting the audit committee agenda for 2010 (PDF) - October 6, 2009
The Canadian Audit Committee Network convened on September 9 in Toronto to discuss considerations for setting the audit committee agenda in 2010. Network members generally expect few changes to the annual agenda-setting process and instead intend to leave time on their agendas to address emerging issues as they arise. To a much greater extent than past years’ agendas, the 2010 agenda will reflect the transition from Canadian Generally Accepted Accounting Principles (GAAP) to International Financial Reporting Standards (IFRS). Network members feel an increasing sense of urgency about ensuring their companies are prepared for that transition. Members also discussed how audit committees might renew their focus on core oversight responsibilities and cut back on what many have described as an ever-expanding scope, while identifying ways to more efficiently manage their time.
[Click here for French version.]

Adapting audit committee oversight to a rapidly changing environment (PDF) - April 7, 2009
CACN members’ audit committees are increasingly focused on issues of strategic importance including liquidity and cash management, often acting as the de facto finance committee. This strategic focus is changing the nature of audit committee meetings, including increasing involvement from the full board and requests for additional information from management, and is forcing the audit committee chair to ensure the agenda is focused and meetings are run efficiently. In response to the financial crisis and recession, audit committees are reconsidering the approach to risk management and oversight as boards are reconsidering the best approach to governance more broadly. [Click here for French version.]

Risk management and the financial crisis (PDF) - November 20, 2008
On October 30, 2008, members gathered in Toronto for the network's eighth meeting, which focused on recent changes in the economic environment and companies' responses to the financial crisis, including approaches to risk management. [Click here for French version.]

Keeping pace in times of rapid change (PDF) - August 8, 2008
The discussion among members was wide-ranging, focusing on issues including historical and current periods of economic instability, the challenge of getting a clear picture of company performance, and the role of the audit committee during challenging times. [Click here for French version.]

Deriving maximum value from the audit and the external auditor (PDF) - March 4, 2008
Network members were in strong agreement that an effective relationship with the external auditor is the key to maximizing the value of the audit. Creating an effective relationship means acknowledging and understanding the cultural differences between audit firms, properly understanding and benchmarking fees and scope, and dealing with regulatory matters. [Click here for the French version.]

The evolution of internal audit (PDF) - October 30, 2007
Members of the Canadian Audit Committee Network discussed the changing role of the internal audit function, and the challenges and opportunities that presents for the company and the audit committee. [Click here for the French version.]

Navigating challenging situations (PDF) - July 10, 2007
VantagePoint explores how audit committees address unplanned issues that occur during the year, including fraud, litigation, and other challenging situations. [Click here for the French version]

Information technology governance (PDF) - April 30, 2007
The growing deployment of information technology systems is creating immense opportunities, and almost equal risk. VantagePoint discusses how the implementation of Section 404 revealed unexpected weaknesses in IT controls. While the audit committee has primary responsibility for financial reporting risks, boards must also consider the impact of information technology on strategy and operations. If technology is a key strategic driver for the business, members believe the full board should be actively engaged in IT oversight. [Click here for the French version]

Risk management: in search of a practical approach (PDF) - Nov. 27, 2006
Network members agree that risk management activities are fundamental to a well-run corporation. VantagePoint explores practical ways in which the board and the audit committee can oversee these activities. Specifically, members discussed making a case for risk management, obstacles to successful risk management, and the board's role in overseeing risk. [Click here for the French version]

The changing face of the audit committee (PDF) - Aug. 15, 2006
VantagePoint delves into the audit committee's evolving (and growing) role, exploring how these changes impact committee composition, compensation, and workload, and the need for the audit committee to trust and rely on key individuals within the company. [Click here for the French version]

Auditor attestation of internal controls: A Canadian perspective (PDF) - Aug. 15, 2006
Regarding the revision of Multilateral Instrument 52-109, members discussed the value of independent attestation of the effectiveness of internal controls. They discussed the attestation's ability to provide increased insight, the potential to reduce personal liability, and the addition of a productive source of tension. [Click here for the French version]

Canadian ACN members are audit committee chairs of non-competing companies based in the region with greater than C$500 million in revenues. Current member companies include:

BCE

Bombardier

CGI Group

CIBC

Goldcorp

Husky Energy

IAMGOLD

Manulife Financial

Quebecor

Royal Bank of Canada

Research in Motion

Sun Life Financial