Audit Committees: Leading Practices

By Randi Morrison posted 12-11-2022 03:56 PM

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The CAQ’s “Audit Committee: The Kitchen Sink of the Board” report shares leading practices on: (i) the board’s allocation of oversight responsibilities to the audit committee, (ii) audit committee workload management, and (iii) audit committee oversight disclosure, based on interviews with 30 audit committee chairs and members, proxy disclosure preparers, investors, proxy advisors, analysts, and shareholder advocates (see pages 17-18) conducted between September 2021 and April 2022.

Titled based on 40% of respondent audit committee members having described their committee as the board’s kitchen sink with reference to their increasing workload and scope of responsibilities, the report shares suggested do’s and don’ts across each of the foregoing topics (see the key takeaways on pages 3 and 4) and includes (in the Appendix) numerous examples of enhanced proxy disclosures on board and audit committee risk oversight, audit committee qualifications, and audit committee continuing education.

The report is intended to complement the “Audit Committee Transparency Barometer” (reported on here) and the Deloitte/CAQ report: “Audit Committee Practices,” which we previously reported on here.

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