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training the audit committee

By Marks, Norman
Publication: The Internal Auditor
Date: Monday, December 1 2003
HEADNOTE

Because internal auditors must stay current on trends, legislation, regulations, and risk management, they are the ideal organizational resource to develop and manage an education program for directors.

"WHERE

WAS THE AUDIT COMMITTEE?" HAS BEEN a question asked by many over the past few years. With their next breath, those same people should be asking why gilt-edged audit committees with members acknowledged as having financial accounting and reporting expertise and who were often directors, chief executive officers (CEOs), or chief financial officers (CFOs), allowed management to take aggressive accounting positions or, even worse, falsify financial statements.

Some point to the limited time that directors are able to spend attending to their duties, and to their reliance on management and the external and internal auditors to provide the information they need to do their jobs. Others say that directors will always be at risk of unethical practices by management. Yet, investors and regulators look to the directors - and especially those on the audit committee - to be the watchdog for shareholders.

In addition, make sure to read these articles:

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  • How much is enough?
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  • The CEO and the audit committee.
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  • Audit committee advice: Use the CFO as a resource
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  • The audit committee and internal audit: Teaming to focus on the future
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  • Internal audit: active ingredient in reform mix. (Audit).
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  • Understanding the changing role of the audit committee.
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