Monthly Archives: October 2014

The intended “oversight role” of Audit Committees.

I’ve been a party to an ongoing debate about the role of the board of directors and the audit committee, in monitoring performance and responsibility for risk management and similar topics. This is an attempt to reduce the confusion and … Continue reading

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Do Audit committees constructively challenge Auditors?

Is your Audit Committee assessing audit quality and creating the right environment for constructive challenge? Instead of spending too much time in reducing audit fees and increasing audit risk, audit committee should spend time in ensuring effectiveness of the external … Continue reading

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How can Audit Committees place reliance on estimates assumptions and forecasts?

Audit Committees face the challenge of understanding the key judgements about the application of accounting policies and the estimation uncertainties inherent in the value of assets and liabilities, due to the level of knowledge they possess and the complexity of … Continue reading

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Independent Directors and Auditors; sans Independence!

A refined definition of independence classifies an outside director as independent when he has not engaged in business or professional activities associated with the company and has no personal relationship with insiders including CEO or controlling shareholders. Otherwise, the director … Continue reading

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