Benefits of the Audit Committee Effectiveness Survey

An effective audit committee gives the board, investors, owners and stakeholders additional confidence in the organisation’s risk management, internal controls and compliance systems, audit functions and financial reports.

The Audit Committee Effectiveness Survey, created by Board Benchmarking in conjunction with KPMG, embodies best practice governance standards for audit committees. By undertaking an Audit Committee Effectiveness Survey, an organisation will demonstrate its commitment to improving its governance. Our survey statements critically challenge the audit committee functions within the organisation. The resulting report will leave an audit committee well placed to embark upon the improvement of its governance.

The pressure is on audit committees

Audit committees are rapidly becoming the principal focus of organisations that want to ensure they are meeting and exceeding their responsibilities. This is largely due to the increased demands placed upon boards and audit committees, by shareholder groups and government regulators requiring higher standards. Not surprisingly, audit committee members and boards are reviewing their current charters, mandates, membership and processes to determine whether they are properly equipped to fulfill the responsibilities of a well-functioning and well-governed audit committee.

Directors are asking themselves, “Are we fulfilling the roles and responsibilities of the audit committee?”, “Does management have the right risk management, internal controls and compliance systems in place?”, or, “Do we have the right members sitting on our audit committee?” These are fundamental questions that should be asked by directors around the world, especially in this era when high profile business failures attract significant attention.

The Audit Committee Effectiveness Survey will assist organisations as they seek to assess their own performance in a constructive way and in comparison to best practice benchmarks.

An organisation that conducts an Audit Committee Effectiveness Survey will quickly and effectively obtain clear indications of their strengths and developmental opportunities, in respect of all areas analysed by the Audit Committee Effectiveness Survey’s WhatWhoHowDo™ Framework.

Results of the survey will help an organisation understand, for example:

The Board Benchmarking Audit Committee Effectiveness Survey has been carefully designed to offer an insightful review, based on current regulations, research and best practices.

Please see the Methodology page for a thorough explanation of the entire range of issues considered when an Audit Committee Effectiveness Survey is carried out.

Other specific reasons for carrying out a Board Benchmarking Audit Committee Effectiveness Survey include the following: