China Boardroom Update - Ten To-Do's for Audit Committees in 2010
2
pages
English
Documents
Le téléchargement nécessite un accès à la bibliothèque YouScribe Tout savoir sur nos offres
2
pages
English
Documents
Le téléchargement nécessite un accès à la bibliothèque YouScribe Tout savoir sur nos offres
! China Boardroom Update Ten To-Do’s for Audit Committees in 2010 Issue 1 - February 2010 ADVISORY In 2009, the economic crisis placed tremendous stress on companies, alarming even the most experienced financial experts. Boards and audit committees guided companies through the crisis - monitoring financial forecasts by focusing on liquidity and cash management and assessing the company’s risk profile. As 2010 begins and both global financial and economic conditions are expected to improve, these monitoring strategies still take top priority. For companies that have survived the turbulent times, boards and audit committees need to take the lead in addressing key issues in the lingering volatile business environment. When considering and carrying out their 2010 agendas, audit committees should: ☑ 1. Regain control of the audit infrastructure such as IT and sales ☑ 4. Continue to monitor fair committee agenda. force? How far have we extended value issues, impairments, and the organisation through The challenges of the economic crisis management’s assumptions outsourcing and off-shoring? As -- access to capital, cash flow, underlying critical accounting companies cut costs and reduce counterparty risks, impairments -- estimates. their workforce, the control have dominated audit committee These issues, together with agendas. As signs of recovery environment becomes even more going-concern challenges, will emerge, take the ...
Voir
Publié par
Langue
English
! China Boardroom Update Ten To-Dos for Audit Committees in 2010 I ssue 1 - February 2010Y ADVISOR In 2009, the economic crisis placed tremendous stress on companies, alarmin g even the most experienced financial experts. Bo ard s and audit committees guided companies through the crisis -monitoring financial forecasts by focusing on liquidity and cash management and assessing the companys risk profile. As 2010 b obalegins and both gl financial and economic conditions are expected to improve, these monitoring strategies still take top priority. For companies that have survived the turbulent times, boards and audit committees need to take the lead in addressing key issues in the lingering volatile business environment. When considering and carrying out the ir 2010 agendas, audit committees should:
☑1. Regain control of the auditinfrastructure such as IT and sales committee agenda. How far have we extended force? The challenges of the economic crisis the organisation through -- access to capital, cash fl ow, outsourcing and off-shori ng? As counterparty risks, impairme nts -- companies cut costs and reduce have dominated audit commi ttee their workforce, the control agendas. As signs of recov ery environment becom es even more emerge, take the opportunity to critical. Now is not the time to cut develop more focused (yet flexible) back on the internal audit s budget. ' agendas, with an eye on the (Please refer to #6 below). company's key financial rep orting risks. To improve the effi ciency of☑3. Focus closel all financial on audit committee meetings, insist ony communications., spend Earni s releases and scripts for laqecustaislviitttiyiempser,eoa-nnmdleoeewtni-gnvagagluemeiatoerdricahlsecklistanalynstgcallsoftenposemoren iscussions issues than the audited financials ning to tain i ortant rpartehseerntthatainonms.erDeolyn'litslteetcompliancebbeucsianuessestihnefoyrcmoantion--mwphichactivities crowd-out substanti ve often does not come from the at doin s stem, is not dmisocreusQsi&oAnsa.nIndlsehsosrt,PloowokerPointgfaiundaintecida,larenpdormtianygnoytbesubjecttopresentations. the same level of internal controls ☑sdedcostsporiskinamednoscuit2b.yehtdnatsrednUabmresunminfscocialinanmgfsyetorsmtngehortirep s. If you espogiven the tCootsthreceuettcionngohmasicbcereisnisa.kerynseisisre,nscoidybdoceimonrccso,neeatescretiinethateruocnyddrlaet'aavenh responseofpaniestothetypesofearningsguidancerthemost com e the aeucdointocomimcmcriitstiese.sEhvoeruyldbboearadsakinndgicnormevpiaenwyiinsgsu2e0s1.0Efningaangceiaelarly-onmwhoedtehlehratshbeeceonmcphaannyg'esddeliverydisclosures,particularlyanynewpermanently, and whether a "cost- disclosures becoming effective reduced" business model can be due to new or revised accounting sustained. Did we cut too much? standards. If relevant, understand Howquicklycanwerestorecriticaltohfescoocimalpmaneyd'isapnoelitcwyoorknsthseucuhsaesTwitter and LinkedIn to reach investors and customers.
☑4. Continue to monitor fair value issues, impairments, and managements assumptions underlying critical accounting estimates.These issues, together with going-concern challenges, will continue to be a major area of focus for audit committees. At the same time, there are important new financial reporting developments -- including changes in accounting for financial instruments, revenue recognition, business combinations and joint ventures that may require the audit committee's attention. Set aside time at each audit committee meeting for an in-depth discussion into the specific financial reporting developments impacting the company.☑5. Rethink the audit committees role in risk oversightwith an eye on narrowing the scope. The tremendous focus on risk today provides an opportunity for the board to reassess the audit committees (and the full board and the other standing committees) role in overseeing risk. Does the audit committee have the expertise and time to deal with strategic, operational, and other risks? Is the expertise of other board members being leveraged? Audit committees already have a lot on their plates with oversight of financial reporting risks.1
.© 2010 KPMG, a Hong Kong partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG In ternational Cooperative (KPMG International), a Swiss entity. All rights reserved.
www.kpmg.com.cnwww.kpmg.com.hk
Contact us For more information, please contact: Risk & Compliance, KPMG China Partner-in-charge Stephen Lee Tel: +852 2826 7267 stephen.lee@kpmg.com .hk Internal Audit, Risk and Compliance Services, KPMG China Northern China Helen Wang Partner Tel: +86 (10) 8508 709 2 helen.wang@kpmg.com.cnBenjamin Ng Director Tel: +86 (10) 8508 7034 benjamin.ng@kpmg.com.cnCentral China Michael Lai Partner Tel: +86 (21) 2212 2730 michael.lai@kpmg.com.cn Christine Yau Partner Tel: +86 (21) 2212 2771 christine.yau@kpmg.com.cn Southern China Patty Wu Partner Tel: +852 2143 8705 patty.wu@kpmg.com.hkHelen Li Partner Tel: +852 2143 8717 helen.li@kpmg.com.hk
☑6. Ensure internal audit is properly☑9. Help link change + risk. Monitor focused and fully utilised. critical alignments. Help refine internal audit's role, and Change creates risk. During times of focus the activities of internal audit dramatic change, the risk of on key areas of risk, as well as risk misalignment of, in particular , the management in general. Internal company's strategy, goals, risk, audit is not accountabl e or controls, compliance, incentives, and responsible for risk management, but people, rises exponentially. Given the it should provide added assurance to audit committee's role in overseeing the audit committee in regards to the risk, internal controls, compliance, adequacy of the company's risk and ultimately the impact of management processes. Internal significant changes on the company's audit is most effective when it is financials, it is in a unique position to focused on risk. Accordingly, the help reduce the risk of misalignment. internal audit plan should be risk- based and focus on critical risks to☑10. Take a fresh look at the audit the business, not merely oncommittees composition and compliance and financial risks.leadership. The audit committee's effectiveness ☑7. Prepare for the potential impactand accountability hinges on of key public policy initiatives onmeaningful self-assessments of the compliance, risk, and governanceaudit committee, both as a group and processes.as individual members. Take a hard Major public policy chan ges, for look at the committee's composition, example the environment and independence, and leadership. Is financial services regulation for sales there a need for a "fresh set of eyes"? practices, capitalisatio n, liquidity and gweillniemraplaricstkambraonaadgecrmosesn-t,segcetinoenraollfyBy KPMG China companies and industrie , and maysKPMG China prepared this document itrmanpsopsaeraedndciytioannadlcreopmoprltiianngc,efor board members, audit committee members and management of obligations. These, in turn, willChinese enterprises. The information rriesqk,uiarnedngeowveorrnmanocdeifioevdecrsoimghptliance,contained within is only for general discussion of the matters included processes.and should not be relied upon as advice for any particular enterprise ☑.8ehToceimonoersoecrpntupmotciaplscrueiinsnitssuocnadcnebecause no consideration is given to vigilant.individual facts and circumstances, tarTnhetemi-eefrcnaodunoodusmpircporedgrsoauswmtrnsue.roBnnehas placedrirpteenotseri.esatregrymreropflychcoentavdluwhi rmeasnulatgs;eamtetnhtetsoaamcehiteivmeeo,pceoratticnugtsThis document should be read in andworkforcereductionsmasyhaveconjunction with the relevant standard, rules, regulations, exacerbatedtahneysetrperaetsesduirtess.Howguidelines and/or authoritative ehamsptlhoyeeceosm?pHowdotheythinkdcohTsitsimunethEboshangliunnorop.ntmeceCnedinennih.ewsirtt they've been treated? AWhere there is inconsistency comprehensive review of the company's anti-fraud and complianc ebetween the two versions, the programmes, including its ForeignEnglish version shall prevail. Corrupt Practices Act c ompliance programme where relevant, may be in order. Having the right tone at the top, and throughout the finance organisation, is critical.
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.
© 2010 KPMG, a Hong Kong partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved. Printed in Hong Kong. KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative
IÓãÚrv7"pN¥
(ãTp¥ø^¥Å_|>ÄEêËÝÚ Ú" style="top:401px;left:106px;width:223px;height:23px;">
