Effective Audit Committees

The course on Effective Audit Committees is designed to equip audit committee members with the critical knowledge, skills, and tools needed to fulfill their governance and oversight responsibilities effectively. Participants will gain a comprehensive understanding of the audit committee’s role in overseeing financial reporting, risk management, internal controls, and corporate governance. The course focuses on enhancing the audit committee’s ability to collaborate with internal and external auditors, ensuring transparency and accountability in financial operations and organizational performance.

This course aims to provide audit committee members with the knowledge, skills, and tools necessary to enhance their effectiveness in overseeing financial reporting, risk management, and internal controls.

1: Introduction to Audit Committees – The role of the audit committee n governance, Regulatory requirements and frameworks (e.g., Sarbanes-Oxley Act, King IV), Audit committee structure, composition, and member qualifications, Relationship with the Board of Directors and internal audit function.

2: Roles and Responsibilities of Audit Committees – Financial reporting oversight, Risk management and internal controls, Internal and external audit coordination, Oversight of compliance and regulatory matters.

3: Audit Committee and Risk Oversight – Role in enterprise risk management (ERM), Understanding and integrating Key Risk Indicators (KRIs), Overseeing cyber risks, ESG risks, and sustainability risks, Monitoring fraud risk and ethical behaviour.

4: Financial Reporting and Internal Controls – Review of financial statements and critical accounting judgments, Internal controls over financial reporting (ICFR), Evaluating management’s risk assessment and response, Detecting and addressing financial fraud

5: Audit Committee and Internal Audit Relationship – The audit committee’s role in overseeing the internal audit function, Evaluating the effectiveness of internal audit, Approving the internal audit plan and ensuring alignment with key risks, Ensuring independence and objectivity in internal audit reports.

6: External Auditors and the Audit Committee – The audit committee’s role in selecting and monitoring external auditors, Reviewing audit findings and addressing material weaknesses, Evaluating auditor independence and performance, Managing the relationship between external auditors and internal audit.

7: Ethical Responsibilities and Culture – The audit committee’s role in promoting ethical conduct, Encouraging whistleblower mechanisms and fraud prevention, Overseeing corporate governance practices, Creating a culture of transparency and accountability.

8: Effective Meetings and Reporting – Preparing for and conducting effective meetings, Reviewing key documents (audit reports, management letters), Reporting to the board of directors, Managing follow-up on recommendations and corrective actions.

9: Audit Committee Evaluation and Continuous Improvement – Performance self-assessment and external evaluation, Identifying areas for improvement, Continuous education and staying current with emerging risks.