EY Center for Board Matters Maximizing Audit Committee

EY Center for Board Matters Maximizing Audit Committee Effectiveness in an Era of Disruption September 10, 2019

Audit committee effectiveness “ High quality audited financial statements are the bedrock of our financial reporting system. JAY CLAYTON Chair, SEC Mr. Bricker, SEC Chief Accountant, expressed concerns about the capacity of While audit committees may be equipped play a role in audit to committees to balance their workloads, givensuch all ofas the overseeing risks that extend beyond financial reporting, demands on their time. He cybersecurity and portions of enterprise risk management, I said boards to should also consider believe it is important for audit committees not lose focus on whether they are identifying and their core roles and responsibilities. managing any risks of audit — Wesley committee overload. Bricker “ Chief Accountant. SEC (201619) Page 1 EY Center for Board Matters

Poll question: What do you think would most enhance your audit committee’s effectiveness? Better insight on emerging external risks 46% More time on the agenda for open discussion on emerging issues 21% Robust self-assessment processes and follow-through on action items 19% Shifting several oversight responsibilities to other committees (e. g. , enterprise risk management and cybersecurity) 14% Source: Survey of board participants during the EY Better Questions for Boards webcast, 2018 year-end issues for audit committees, December 2018. Page 2 EY Center for Board Matters

Small-group discussion questions 1. Which of the following issues are appearing on your audit committee agendas: ESG data and reporting; Culture risks and metrics; Cybersecurity; Emerging technology risks; Digital change in the finance function; Other? 2. How have these issues affected the information the committee requires from the finance organization and/or from other parts of the firm? For the report-out: 3. Page 3 What’s one piece of advice your group would share with fellow directors and finance leaders about how to ensure the audit committee gets “the right information, in the right format, at the right time” on these issues? EY Center for Board Matters

Additional Resources • Key Issues for Audit Committees (EY Center for Board Matters) • Where is Technology Taking Audit and Accounting? (FEI) • How Technology is Helping Audit Committees See the Bigger Picture (EY) • The Future of Finance (FEI) • Examining the Role of Audit Committees: Four Perspectives (IFAC) • Subscribe to the EY Center for Board Matters and FEI Daily Page 4 EY Center for Board Matters

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