* All fees are exclusive of vat ** PREMIUM - Customize your learning experience
Audit Committees are expected to play a vital role in governance and in building trust in corporate reporting. Audit Committees therefore need members who have appropriate levels of expertise and knowledge of the industry and of the company.
Furthermore audit committees are in best position to offer effective oversight of the performance, independence and objectivity of the auditor and the quality of the audit.
By effectively carrying out its function and responsibilities, the audit committee helps to ensure that management properly develops and adheres to sound system of internal controls that procedures are in place to objectively assess management’s practices and internal controls objectively assess the company’s financial reporting practices.
What Do Participants Learn?
This course will explore the fundamentals of the role of the Audit Committee and the nature and essential qualities of its members, particularly the Audit Committee Chairman. The course will cover the relationships with all key stakeholders and will examine all the key information flows and decision processes.
The course will equip participants with an understanding of the appropriate levels of knowledge and expertise and an awareness of the mechanisms and priorities for audit committees in today’s complex and highly regulated financial services world.
Who Should Attend?
Audit Committee members and those directly involved in supporting and preparing information for Audit Committees.
What Will the Learning Experience Include?
Comprehensive pre-program activities include:
Web-based information forms & surveys completed by attendee.
Direct consultation with the attendee about the expectations.
During the training, participants engage in data, activities, and conversations that lead to insight and knowledge.
Participants learn from expert trainers who have both academic and business experiences.
Highly applicable training content & instructive activities for adding depth to training topics.
**A half-day site visit for integrating the experience & plan next steps. Opportunities to provide connections, ideas & support.
Explore & Practice
Apply & sustain the learning experience by using this ongoing support:
To ensure participant has new skills or behavior progress.
Optional, fee-based mentoring & coaching with the trainer.
Training materials & additional documents (e-books, pdf files, presentations and articles)
Evaluate your training experience by giving us feedbacks and help us to reach our organizational goals.
Section 1: The Role, Responsibilities and Essentials of of Audit Committee Members
The role of the Audit Committee as delegated by the board, typical structure, membership, terms of reference and agenda items
The role of advisors and the role of the Company Secretary
The provision of information to the Audit Committee
What are the Audit Committee Essentials?
Oversight of financial reporting, audit quality, and other risks on the committee’s agenda
Understanding the company, its culture and its dynamics
Demonstrating sound industry knowledge and access to contacts
Appropriate relationships with other board members, senior management, internal and external auditors
Understanding current and emerging issues (e.g. cyber security, emerging technologies and social media)
Understanding the full range of management information provided to the Audit Committee
Case study: “Looking at the essential qualities of an Audit Committee member”
Section 2: Overview of the Relationships with Key Stakeholders
The Finance Team
How to provide effective oversight and challenge to the annual report and accounts
Dealing with the requirement for the annual report to be ‘fair, balanced and understandable’
Assessing the new strategic report
Understanding the Committee’s role in reviewing regulatory returns
Case study: Understanding the structure of a typical report and accounts, including examples of good and poor annual reports
Roles and responsibilities for external auditors in relation to audit committees
Assessing external auditor effectiveness
Governance requirements and the latest guidance from the Financial Reporting Council (FRC)
Re-tendering the external audit role and evaluating external audit pitches
Section 3: Internal Audits
Roles and responsibilities for internal auditors in relation to audit committees
Governance requirements and the UK Financial Services guidance (the “FS Code”)
Understand the guidance from the Basel Committee on Banking Supervision for assessing the effectiveness of the internal audit function in banks
Understanding the internal audit universe and the annual risk-based internal audit planning process
Internal Audit reports, gradings and links to the Board Risk Committee
Evaluating internal audit effectiveness
Section 4: Audit Committee Activities
Membership and Attendance
Guidance for nomination committees
Independence and how this is defined
Who should attend and why
Importance of papers, minutes, actions and follow-up
Practical strategies to build your network
Case study: Assessing some examples of good and poor Audit Committee minutes
Annual report and accounts
Strategic report and the relationship with the CRO and the board risk committee
Section 5: Guidance on what must be Included in the Audit Committee Report
A summary of its role
Members, their qualifications and meetings held
Significant issues considered in relation to the financial statements
How they assessed the external auditors’ appointment
Tenure of the current auditors and time of last tender
Contractual restrictions on auditor choice
External audit fees and non-audit services
Case study: Reviewing examples of good practice Audit Committee reports
Members of committees in financial services companies should have sufficient relevant expertise to understand how complex transactions and financial instruments are recorded and valued
Relationship with Compliance
Case study: Real life whistle blowing examples and outcomes
Section 6: Audit Committee Effectiveness
The Role of the Audit Committee Chair
A balance between teamwork and challenge
Working with company secretariat
Setting the agenda and planning the work of the committee
Informal meetings outside committee
Relationships with the members of the executive management team
Length of service
Annual Reviews of External and Internal Audit Effectiveness