Roles and Responsibilities for an Audit Committee

Questions for Audit Committees to Consider

• Has the audit committee recently reviewed and updated the audit committee charter?
• Does it incorporate changes in the regulatory, legal, or general business environments or changes in the company’s governance structure?
• Does the audit committee annually evaluate the independence of its members?
• Does the financial literacy self-assessment reflect recent developments?
• Have the audit committee, senior management, and the chief audit executive reconciled their expectations for the internal audit function?
• Is the full board, not just the audit committee, participating in risk oversight and discussing the most material risks and how they are being monitored?
• Are all non-GAAP financial measures reconciled to appropriate GAAP measures?
• Does the audit committee hear directly from the management executive who has day-to-day responsibility for compliance matters?
• Has the audit committee established expectations regarding the nature and method of communication with the independent auditor?
• Have the board and audit committee addressed education in the company’s corporate governance guidelines, in accordance with NYSE listing standards?
• How does the audit committee review and approve related-party transactions? Is this process documented?
• Does the audit committee have sufficient knowledge of the industry and business to form the foundation for effective fraud oversight?

See more at: http://www.corpgov.deloitte.com/site/us/audit-committee/roles-and-responsibilities/