ACLN ViewPoints - Comply, Audit, Disclose! - 8 October 04 - Final0

ƒƒƒƒƒƒƒƒƒƒƒƒƒƒƒƒƒƒ ViewPoints October 8, 2004From the Audit Committee Leadership Network Tapestry Networks, Inc. 1601 Trapelo Road, Waltham, MA 02451 Tel: 781 290-2270 Fax: 781 290-2271 Comply, 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-, ...