ACLN ViewPoints 6 - Comply, Audit, Disclose! - 8 October 2004 - Final

AUDIT COMMITTEE LEADERSHIP NETWORK IN NORTH AMERICA ViewPoints October 8, 2004 TAPESTRY NETWORKS, INC · WWW.TAPESTRYNETWORKS.COM · +1 781-290-2270Comply, Audit, Disclose! New thinking about the role of the audit committee Introduction The Audit Committee Leadership Network held its sixth meeting in New York on September 22, 2004. The theme for the discussion was “Comply, Audit, Disclose! New thinking about the role of the audit committee.” It covered three issues that are significant for members: • Non-financial compliance – beyond checking the box? • Internal audit – what future post Section 404? • Disclosure – is there value in external and internal transparency? Members also identified other issues they are currently concerned with and that they are likely to return to in future meetings. These issues include: • Implementation of Section 404 (including complexity and cost, time available for remediation efforts, auditor and regulator definitions of significant deficiency and material weakness, and policy toward disclosure of significant deficiencies) • Enterprise risk management and the role of the audit committee, including how to define risk • Pre-approval of audit fees • Amount of time available for audit committee business • Nature of audit committee reporting to the full board The members of the network participating in the meeting, who sit on the boards of about 25 large-, mid-, and small-cap public companies between them, were: • ...