Game-changing developments in Europe and the United States – Implications for Canadian Audit Committees

Potential changes would affect audit committee oversight.

In the aftermath of the financial crisis, regulators, politicians and others around the world—especially in Europe and the US—have been investigating its root causes and developing their recommendations on how to prevent future crises. The role of the auditor and the relationship among auditor, audit committee and organization have been the subjects of much discussion. Recent proposals in Europe and concept papers in the US by the Public Company Accounting Oversight Board (PCAOB) signal fundamental change in these relationships and the oversight role played by the audit committee.

Audit quality and the roles played by auditors, audit committees and others remain fundamental to the integrity of financial reporting in our capital markets—particularly given this changing environment.

Through a moderated panel discussion with your audit committee peers, business executives, directors and seasoned auditors, we will explore the increasing importance of audit quality and consider the implications of European and US developments, including those directly impacting audit committees.

Continuing professional education credit: Attending this roundtable may qualify for up to 2 hours of professional education credit.

Quality in Financial Reporting: Four legs are stronger than three—Adding the regulator to the table

A discussion with Brian Hunt, Chief Executive Officer, CPAB

Over the years, we’ve brought together audit committee members, management and external auditors to provide a forum for discussion on topics key to the role of the audit committee. We expanded our panel to include an additional contributor to the mission of improving the quality of Canadian financial reporting—Brian Hunt, Chief Executive Officer, Canadian Public Accountability Board (CPAB), joined our discussion:

• A discussion with Brian Hunt, Chief Executive Officer, CPAB
  Raising the bar on audit quality – CPAB’s perspective on the role played by various stakeholders. What does it mean to audit committees?
  
  

• Panel discussion: Driving the audit committee agenda In the context of sharing views on the role of the various stakeholders in the public markets—management, the board, auditors and regulators—we’ll discuss issues driving your agendas today and through the rest of the year.

Risk and Reform – Critical Issues for the Audit Committee Year-End Agenda

From major operational risks—and the controls around those risks—to emerging risks and "black swans," oversight of risk management continues to be the top challenge facing audit committees and boards today.

At the same time, the ongoing wave of regulatory reform is reshaping the regulatory landscape dramatically, both here and in the US, with significant implications for Canadian audit committee and board oversight. And let’s not forget that the final push to IFRS is on.

Among the topics we explored:

• What lessons can be taken from recent business cycles and calls to strengthen risk management and oversight going forward? What role can the audit committee and board play in helping the company strengthen controls around key operational risks, spot emerging risks and trends, and think about the unthinkable—"black swans"?
• Compliance, internal controls certification, financial reporting, and governance processes all will be put to the test as companies adjust to the new—and still changing—regulatory landscape. What are the implications for the audit committee?
• The state of the union: where does the US stand on convergence and FASB initiatives? What are the key things audit committees should know about Dodd-Frank?
• IFRS—the push is on. Is your board ready? What needs to be communicated to the stakeholder base around analysis of IFRS financial statements?

Through a moderated panel discussion with seasoned directors, business executives, and your audit committee peers, we explored how audit committees and boards are helping to guide their companies forward in today’s environment.

Addressing 2010's challenges – Overseeing Tax Risk and Financial Reporting Under IFRS

Many countries have been changing their tax laws in ways that treat tax as a corporate governance and social responsibility issue. The 2010 federal budget suggests that Canada is likely following suit. How are audit committees managing to effectively oversee tax risk without being daunted by its complexity?

The changeover to IFRS is quickly approaching – adding complexity to many areas that audit committees oversee. What areas are warranting close attention through 2010, and how are audit committees addressing them?

At this series of roundtables, will help audit committee members and other directors shared their ideas and approaches for addressing these challenges.

Overseeing the IFRS Conversion and Communications with stakeholders

In this series of roundtables, audit committee members and directors considered the move to IFRS from the perspective of financial statement users—shareholders, analysts, and others in the business community. Participants discussed the implications for their oversight of the enterprise’s communications strategy as well as its conversion process.

Our roundtables continue to explore a wide variety of issues of timely interest to audit committees. Topics for previous roundtables have included:

• Strengthening audit committee oversight during economic uncertainty
• Overseeing the changeover to IFRS and dealing with challenges
• Overseeing tax risk
• How it all fits together – Coordinating the oversight activities of the board, audit committee, compensation, and other board committees
• Overseeing risk management
• Overseeing CEO and CFO certification of internal control
• Audit committee processes for evaluating and overseeing management’s accounting policies, including judgements and estimates underlying financial reporting