2024 Audit Committee Agenda | Newsletter

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Compared to prior years, our suggested 2024 audit committee agenda has taken a bit of a turn due to ongoing and recent market and regulatory developments.

A complex business environment: The 2024 audit committee agenda includes important enterprise, governance, process, technology, and financial reporting and disclosure issues that merit consideration by the audit committee beyond its ongoing chartered activities.

The 2024 Mandate for Audit Committees
Discuss the implications of the SEC’s cyber disclosure enhancements Determine the extent of any talent and skills shortages Inquire as to external reporting implications of finance’s use of generative AI Review the substance and consistency of ESG reports and the underlying reporting process Assess internal audit’s commitment to relevance	Assess the impacts of inflation, higher interest rates, economic uncertainty, tighter lending standards and other relevant factors on financial reporting assertions Ascertain whether a “next generation” mindset is being deployed to combat rising SOX compliance costs Monitor the impact of cost-optimization measures and organizational changes on key internal controls Note: The committee should continue to self-assess composition and focus.

The 2024 Mandate for Audit Committees

Enterprise, Process and Technology Issues

Financial Reporting Issues

Discuss the implications of the SEC’s cyber disclosure enhancements
Determine the extent of any talent and skills shortages
Inquire as to external reporting implications of finance’s use of generative AI
Review the substance and consistency of ESG reports and the underlying reporting process
Assess internal audit’s commitment to relevance

Assess the impacts of inflation, higher interest rates, economic uncertainty, tighter lending standards and other relevant factors on financial reporting assertions
Ascertain whether a “next generation” mindset is being deployed to combat rising SOX compliance costs
Monitor the impact of cost-optimization measures and organizational changes on key internal controls

Note: The committee should continue to self-assess composition and focus.

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In formulating these topics, we considered input from our interactions with client audit committees and insights from meetings with active directors in various forums.

Our point of view: There is an opportunity here for audit committees to provide value-added advice and counsel to management on various important matters that can impact financial and public reporting, directly or indirectly.

Self-Assess Committee Effectiveness: In addition to discussing these agenda items, we offer assessment questions for audit committees to consider when evaluating their performance.

For more about the 2024 audit committee agenda, read the article here.

(The Bulletin — Volume 8, Issue 7)