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How to Make Audit Committees More Effective

How to Make Audit Committees More Effective

by Starling Insights

Starling Insights Editorial Board

Apr 08, 2024

Observations

Audit committees, typically composed of directors with financial expertise, play a pivotal role in corporate governance. However, in a recent survey of 266 audit committee members, Deloitte's Center for Board Effectiveness and the Center for Audit Quality found that most believed enhancements were needed for their committees to become truly effective, as reported by Fortune.

"One of the surprises to me was that only about a third of the audit committee members mentioned that they felt their committee was very effective and didn't need to really make any enhancements," said Krista Parsons, Deloitte's Audit Committee Program Leader. Cybersecurity and enterprise risk management remain top priorities for audit committees, with talent acquisition in finance and internal audit, compliance, and finance transformation also significant concerns.

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