“Being a director of a public company is not for the faint of heart. Members of audit committees particularly need to be strong.”
—Former SEC Chair Mary Jo White
Audit committees play a critically important role in governance and society, establishing confidence and trust in capital markets by ensuring high quality, reliable financial reporting.
They bear heavy responsibilities for a wide range of topics: controls over financial reporting; disclosures, including non-GAAP metrics; overseeing external and internal auditors. Audit committees also manage complaints and whistleblower tips about accounting, policy compliance, internal controls, and auditing matters. They are central to creating a culture of compliance and integrity within the world’s largest public companies. If this were not enough, today’s audit committees are taking on additional risk oversight roles, including cybersecurity.
Audit committees require financial literacy and expertise, of course, but technical skill is rarely sufficient to master changing reporting requirements or to challenge management on complex decisions. Deeper insight and the wisdom of experience are essential.
Tapestry Networks supports the chairs of audit committees through networks that provide confidential peer learning and opportunities to engage with experts, regulators and policymakers. All of the audit committee networks are sponsored by EY as part of its commitment to strengthening governance and increasing trust in the capital markets.