Audit committees must learn to work smarter and schedule enough time to tackle ever-increasing duties. Thanks to their increased workload, committees struggle with what to put at the top of their "to-do" lists. In addition, Canadian audit committees' involvement in risk management is not entirely clear in compliance regulations so committee members must wade through these requirements to determine the company's best practices.
These additional demands result from stakeholders' ever-growing expectations and significant regulatory change, particularly Bill 198. With regulators continuing to scrutinize corporate reporting, this forces audit committees to find a balance between juggling new and existing duties.
As a result of this additional pressure Canadian audit committees face, PricewaterhouseCoopers recently released a report, Audit Committee Effectiveness — What Works Best, 3rd Edition, which was developed with input from knowledgeable audit committee chairs and internal audit directors as well as the vast experience from PricewaterhouseCoopers' professionals. The report addresses discharging core responsibilities, managing key relationships and other drivers supporting key effectiveness. These drivers include:
- Financial statement review;
- Effective risk management and internal control;
- Compliance and ethics/ installing a code of conduct;
- Oversight of management, internal auditing;
- Maintaining relationships with external auditors;
- Utilizing resources and special investigations;
- Committee composition;
- Training;
- Meetings; and
- Charter and evaluation.
How we can help
PricewaterhouseCoopers assists boards and management by reviewing their current governance practices and comparing them to the relevant rules, guidelines and best practices. For any gaps we identify, we recommend changes to practices. In short, PricewaterhouseCoopers will help identify, understand and manage the requirements needed to comply with Canada’s corporate governance rules and regulations under Bill 198 and related guidance from the securities regulators.
For more PwC articles on relevant issues, visit www.pwc.com/ca/directorconnect. For copies of Audit Committee Effectiveness — What Works Best (3rd Edition), please contact:
