The Institute of Internal Auditors’ (IIA) position paper Relationship of Trust – Building Better Connections Between the Audit Committee and Internal Audit stresses the importance of a trusting and dynamic partnership between internal audit and the audit committee. The IIA calls the relationship between both parties “critical” to good governance and suggests that the “CAE needs clarity when it comes to the demands and expectations among the audit committee […]” (p.1). Bearing this in mind, the recent publications on audit committee priorities by Deloitte and EY should be of special interest for internal audit practitioners:
In its Audit Committee Practices Report: Priorities and Committee Composition Deloitte finds that outside of financial reporting and internal controls, audit committee members anticipate Cybersecurity, Enterprise risk management, and ESG disclosure and reporting to be among their top three areas of focus for the year 2023. And while it is the opinion of 92% of respondents that their audit committees have the appropriate collective experience needed, Cybersecurity and Technology are named as the top areas of expertise that could enhance audit committee effectiveness.
EY’s publication What audit committees should prioritize in 2023 aims to support audit committees in acting proactively. It does so by addressing the areas of risk management, financial reporting, tax and the regulatory landscape. The article gives an overview of the most important developments in each area and poses a number of concrete questions for audit committees to consider.
The IIA’s position paper can be found here.
The above mentioned publications can be found here (EY) and here (Deloitte).