Audit committees should consider conducting an annual comprehensive self-evaluation of their performance and effectiveness. This can be accomplished in a number of formats and scenarios, such as self-evaluation, using outside evaluators, or employing a 360-degreeformat. The self-evaluation can take different forms, involve a number of participants, and use diverse techniques. Most important, however,it should employ a straight forward approach that will aid the audit committee in assessing its strengths and lay a foundation for future improvement.
Many companies have found that they can put in place effective processes for managing risks on an enterprise-wide basis that will improve strategic decision-making, and support the achievement of organizational objectives. In order for enterprise risk management(“ERM”) to be seen as value-adding however, the board and senior executives of an organization must set the appropriate tone for an open dialogue about the risks an organization faces, its appetite for those risks, and its plans for managing those risks.
The Financial Accounting Standards Board’s Accounting Standards Codification (FASB ASC) represents a major shift in the organization and presentation of U.S. generally accepted accounting principles (GAAP). This major restructuring of accounting and reporting standards is designed to simplify user access to all authoritative GAAP by providing the authoritative literature in a topically organized structure. This brief will answer questions you may have about the restructuring.
On February 17, 2009, President Obama signed legislation designed to work with the Emergency Economic Stabilization Act of 2008 (EESA) to stimulate the U.S. economy: the American Reinvestment and Recovery Act of 2009 (ARRA) primarily is designed to combat rising unemployment, put more money in the hands of consumers, and reduce the likelihood that state and local governments will need to significantly raise taxes. This brief answers questions related to the Act and poses questions for senior management.
Prepared by representatives of CAQ member fi rms, this publication is a reference for auditors of public companies that will help them improve the effectiveness and efficiency of their audits. The information benefits audit committee members and serves as a useful resource for members who take an active role in reviewing how company management has designed and documented its internal control over financial reporting (ICFR).