Implications of audit regulation and directive to restore integrity
and trust between companies, markets, and the audit committee
Audit committee members and external auditors, in particular,
are the most important gatekeepers to provide attention to financial reporting
and financial fraud processes. Each function has a responsibility to foster
high-quality, reliable financial reporting. Stakeholders recognise that
audit committee members and statutory auditors exercise a significant amount
of judgment on a day-to-day basis, and are not in the business of second-guessing
good faith judgments. The focus of the seminar is to provide updated guidance
on how audit committee members can carry out their responsibilities, and
how auditors can comply with relevant auditing standards in their audit
work, based on the audit reform.
Implementing efficient changes
Winning in a vibrant economy with a sustainable corporate growth pattern
depends on how the business and markets work and build together the high
levels of trust and integrity in all interactions with stakeholders. How
can the new regulatory and legislative mechanisms on the audit reform
and the responsibilities of the audit committee, help to reduce the risks
of market failure, minimising unproductive capital and support the resources
of public and private companies.
The UK legislation on auditor liability, transparency, and advisory has
been implemented. Therefore, Copenhagen Compliance UK Ltd® (together with
Grant Thornton) will conduct a full day seminar at the 10th annual European
GRC Summit in London on the 28th September 2016:
The objective of the workshop is to gain a better understanding of the
social and business implications of the legislation, including the role
of audit committees in future. How can the new rules and regulations ensure
confidence in the statutory auditors reporting, supervision, and independence?
P with the company they are auditing - With In other words, how does the
Board (or Audit Committee) role as a guarantor to the shareholders and
the company's other "stakeholders" affected by this legislative package?
- What are the new challenges of audit committees will continue to
be at the center of the recent audit reforms?
- How does the audit legislation relate to the statutory review practices
of 'public interest entities (PIE) companies?
- How to improve the purpose of the legislation, to enhance audit
quality and auditor independence.
In most European countries the mandates on Audit Committees is in force
from June 2016 with additional guidance provided by the oversight and
monitoring authorities from June until August. The 10th annual European
GRC Summit on the 28-29th September in London will contribute to getting
a deeper understanding of the social and business implications of the
legislation. How to boost confidence in corporate reporting and strengthen
the Board / Audit Committee's future role as a principal benefactor to
all stakeholders.
During the seminar, there will be a serious debate on the future function
of the audit committee with the participation of individuals and experts
that highlight views on the situation from a variety of different angles
from, chairs, oversight authorities, lawyer's auditors and advisors.
Therefore, among the speakers are members of the audit committees, board
members, and other stakeholders. These speakers will first review the
big picture of the new legislation in a Governance, Risk, and Compliance
(GRC) context. Then board and audit committee members will share their
experiences in their function, role, and responsibilities. Oversight authorities
will enlighten the participants on how they will ensure compliance both
toward the auditors, audit committee, and stakeholders. Finally, commercial
academics together alluring come with summaries and perspectives.
The objective behind the new rules (Regulation 537/2014 and Directive
2014/56 / EC) is to improve audit quality and to restore investor confidence
in the available financial information:
- Emphasize the independence and contribute to a more dynamic audit
market in the EU
- Provide audit committees some tools for better supervision of the
statutory auditors
The audit committees will in future have new distinct and enhanced responsibilities
on all financial issues. This adjustment of the role, duty and accountability
could give rise to a discussion on liability issues. This analysis is
needed to ensure that there is no undermining of collegiality in the rest
of the board who are not members of the audit committee.
The Board continues to have a collective responsibility for all decisions
taken, but will in the future probably use less time on financial matters
as audit committee is responsible for some financial issues. Therefore,
the Board must ensure that there is increased reporting on all financial
matters from the audit committee to the other board members happened to
secure information.
On the 28th of September, and the 5th October 2016 we will discuss the
consequences of the introduction of the supervision of audit committees
at the national level. It is the supervisory authority to monitor and
control the audit committee's composition, its competencies, as well as
its responsibilities. This change will probably deprive the shareholders
of their right to freely elect directors (and compose the audit committee
members). When an external third party - which is a public authority -
in part will oversee the performance of the core tasks of the audit committee,
and not least with different strategic and financial issues as a point
of departure from the current practice.
The seminar is held under the Chatham House Rule, to attract the right
participants / speakers and to encourage discussions and opinions on Audit
Committees future role, tasks, and responsibilities.
