Effective Audit Committee Guide

How Should an Effective Audit Committee be Governed?

An audit committee should adopt a formal written charter that is focused on the mission of the audit committee. 

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How Much Time Should an Audit Committee Member Spend on Committee Work?

The complexity of the organization’s activities, its stage of development and magnitude of its issues will determine the audit committee’s agenda.

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How Does One Maximize the Benefits in Conducting Audit Committee Meetings?

The audit committee needs to participate in the agenda-setting process up front along with other appropriate individuals e.g., external and internal auditors and management , and the audit committee chair needs to preside over these meetings to ensure adherence to this agenda.

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NACD’s “Ten Principles of Effective Audit Committee Oversight”

The NACD Blue Ribbon Commission on the Audit Committee recommends the following principles that it believes provide “a foundation for engaged, effective audit committee oversight.”

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How Should an Audit Committee Evaluate its Own Effectiveness?

We believe that an audit committee should conduct an annual assessment of its own effectiveness. There are a number of ways to conduct this self-assessment.

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How Should an Audit Committee Remain Current with Regard to Technical Guidance?

We believe that an audit committee should conduct an annual assessment of its own effectiveness. There are a number of ways to conduct this self-assessment.

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