Corporate Finance, DeFi, Blockchain, Web3 News
Corporate Finance, DeFi, Blockchain News

Audit Committees, Risk Management and Internal Audit need to Shape Up!

KPMG’s latest Global Audit Committee Survey (link below), published this month has a number of messages. You can refer to a summary by NACD’s Directorship for some of the highlights.


Norman Marks
Norman Marks
Here are some excerpts that caught my attention, with my comments:

- While 37% said their risk management program is “robust and mature”, 45% said the program requires “substantial work” while 14% don’t have a program nor plans to implement one
. Given that few boards have a good understanding of risk management, I suspect that the 37% are highly optimistic in their assessments. The KPMG survey said that 48% of boards are effective in their oversight of risk. I doubt that many boards are as effective as they think they are

- Only 31% felt that their risk management program was dynamic enough to cope with a rapidly changing risk environment

- The quality of risk-related information continues to be an area of concern

- Only 52% were satisfied that management has identified the significant risks to its business/growth plans and has implemented appropriate controls to monitor those risks
. It is interesting to note that KPMG only asked about “monitoring” the risks, not about acting to manage the risks

- 38% were less than confident that their financial statements presented an “understandable” picture of the company’s position

- Fewer than half of the 1,800 respondents are satisfied that internal audit delivers the value to the company it should (45%), and that the internal audit plan properly focuses on the “critical risks to the enterprise” (49%)

- Only 38% perform a formal and comprehensive assessment of the external auditor’s performance

Overall, there is a lot of good content in the study, and I recommend a careful and thoughtful read.

Questions:
How does your organization rate in these areas?
What are you doing about it?

KPMG’s latest Global Audit Committee Survey:
http://www.kpmginstitutes.com/aci/insights/2013/pdf/kpmg-global-audit-committee-survey.pdf



Norman Marks, CPA, is vice president, governance, risk, and compliance for SAP's BusinessObjects division, and has been a chief audit executive of major global corporations for more than 15 years. He is the contributing editor to Internal Auditor’s “Governance Perspectives” column.
normanmarks.wordpress.com/

Mardi 12 Février 2013




Nouveau commentaire :
Twitter

Your email address will not be published. Required fields are marked *
Votre adresse de messagerie ne sera pas publiée. Les champs obligatoires sont indiqués avec *

OFFRES D'EMPLOI


OFFRES DE STAGES


NOMINATIONS


DERNIERES ACTUALITES


POPULAIRES