Audit Committee Requirements Practice Aid

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Audit committees are a critical component of building trust in capital markets and the committee work of overseeing financial reporting, compliance, internal & external audit is a year-round commitment. Audit committee duties, responsibilities, and disclosures for public companies are numerous and are governed by regulation and rulemaking, U.S. stock exchange listing standards, and evolving corporate governance leading practices. BDO has designed a tool to assist audit committees in fulfilling their obligations, documenting their activities, and developing meeting agendas.

This practice aid outlines duties, responsibilities, and disclosures to be carried out by public company audit committees (ACs) as promulgated by various rules and standards, and evolving corporate governance leading practices within six categories: 

Composition

General Responsibilities

Oversight of Risk Management and Financial Reporting

Oversight of External Auditors

Oversight of Internal Auditors

Oversight of Compliance, Ethics, and Controls

We encourage audit committees to use this tool to help plan and document their annual activities and meeting agendas but refer to specific rules and standards and consult with counsel if using for documentation purposes. The audit committee can use this tool in conjunction with the Illustrative Audit Committee Charter and tailor it to reflect the responsibilities in the company’s audit committee charter. 

We hope you and your fellow audit committee members find this tool useful in aiding you in your oversight responsibilities.

Note: This practice aid will continue to evolve over time as rulemaking, best practices, and resources continue to develop.

Disclaimer: This publication has been prepared by BDO and is intended to provide general information only. It is not intended to be definitive, all-inclusive, or a substitute for professional advice or the reading of relevant rules, standards, and regulations. Users are encouraged to consult the applicable authoritative guidance and seek professional advice as appropriate. BDO shall not be held liable for any loss or damages arising from the use of, reliance on, or reference to this publication.


The BDO Center for Corporate Governance endeavors to support directors in engaging in effective governance by providing insights, learning, and networking opportunities in collaboration with BDO subject matter specialists and advisors designed specifically for boards of directors.

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