Credit Crunch – Guidelines for Enhanced Disclosure by Audit Committees

ENHANCED DISCLOSURE WORKING GROUP GUIDELINES FOR ENHANCED DISCLOSURE TO ASSIST DIRECTORS, AUDIT COMMITTEES, SHAREOWNERS AND INVESTORS January, 2009 1 ENHANCED DISCLOSURE WORKING GROUP GUIDELINES FOR ENHANCED DISCLOSURE TO ASSIST DIRECTORS, AUDIT COMMITTEES, SHAREOWNERS, AND INVESTORS INDEX Page Preface 3 Guidelines for Enhanced Disclosure 1. Information Flows to the Audit Committee 4 2. Risk and Internal Controls 4 3. Valuation of Assets and Liabilities 5 4. Write Downs and Impairment Provisions 6 5. Securitisation, Off-Balance Sheet and Contingent 6 Liabilities 6. Internal and External Auditors 7 7. Executive Compensation and Risk 7 8. Substance not Form 8 9. Audit Committee Charter 8 10. Membership 9 Appendices I.Endorsing Organisations 11 II. Working Group Members 12 The Working Group would welcome any views and feedback. Please e-mail us at enhanceddisclosure@standardlife.com 2 PREFACE 1The Global Auditor Investor Dialogue recognises the need to restore confidence in the current economic climate and sees enhanced disclosures relating to accounting, audit and risk controls as having a pivotal role in achieving this. Accordingly, certain Dialogue members agreed to convene an independent working group to develop guidelines, which would focus primarily on disclosure and be ...