The Institute of Internal Auditors

Greetings!

This month's issue of Tone at the Top newsletter deals with A New Level of Audit Committee Involvement. With such a changing economic environment, the audit committee's roles and responsibilities are increasing now, more than ever.ï¿½ According to the article, The National Association of Corporate Directors (NACD) and KPMG recently released a new study, â€œThe Audit Committee Journey: Recalibrating for the New Normal. The survey indicates that, in addition to improving their overall effectiveness, audit committee members primarily will focus on four top priorities over the coming year:

Understanding and monitoring the impact of the financial crisis.
Overseeing the effective management of risks.
Ensuring clear and accurate financial reporting.
Fostering and maintaining a strong internal control environment.

See below for an excerpt from this article about how audit committee members are increasing their involvement:

Hands-On Involvement: ï¿½To meet the challenges posed by the economic crisis, three out of four public company audit committee members surveyed indicated that they have increased

their active involvement with management. This is evidenced by the fact that they hold more formal and informal meetings with management. They spend more time in frank discussions with management, questioning

and testing what they hear and what they assume. They are diligent about acquiring quality information that provides a clear picture of the way things are. In addition to getting information from a variety of sources, they also visit key units and offices to see for themselves.

The internal auditors are critical to the quality of information received by the audit committee. Because of their inherent independence and objectivity, their understanding of the corporate culture; and their integrity, discernment, and insights; the internal auditors are ideal conduits of information for the audit committee. They also can put together educational sessions for management to help engage the entire organization in good practices and information sharing.


	Greetings! This month's issue of Tone at the Top newsletter deals with A New Level of Audit Committee Involvement. With such a changing economic environment, the audit committee's roles and responsibilities are increasing now, more than ever.ï¿½ According to the article, The National Association of Corporate Directors (NACD) and KPMG recently released a new study, â€œThe Audit Committee Journey: Recalibrating for the New Normal. The survey indicates that, in addition to improving their overall effectiveness, audit committee members primarily will focus on four top priorities over the coming year: Understanding and monitoring the impact of the financial crisis. Overseeing the effective management of risks. Ensuring clear and accurate financial reporting. Fostering and maintaining a strong internal control environment. See below for an excerpt from this article about how audit committee members are increasing their involvement: Hands-On Involvement: ï¿½To meet the challenges posed by the economic crisis, three out of four public company audit committee members surveyed indicated that they have increased their active involvement with management. This is evidenced by the fact that they hold more formal and informal meetings with management. They spend more time in frank discussions with management, questioning and testing what they hear and what they assume. They are diligent about acquiring quality information that provides a clear picture of the way things are. In addition to getting information from a variety of sources, they also visit key units and offices to see for themselves. The internal auditors are critical to the quality of information received by the audit committee. Because of their inherent independence and objectivity, their understanding of the corporate culture; and their integrity, discernment, and insights; the internal auditors are ideal conduits of information for the audit committee. They also can put together educational sessions for management to help engage the entire organization in good practices and information sharing.


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