To Do List for Audit Committees in 2009

KPMG's Audit Committee Institute, an organization created by KPMG to communicate with audit committee members to enhance their awareness of, commitment to, and ability to implement effective audit committee processes, has issued a short document highlighting areas audit committees should focus on when setting their 2009 agendas.

The document, "Ten To-Do's for Audit Committees in 2009," as the name suggests, lists ten areas on which the ACI feels audit committees should place their attention, and provides a little discussion about why.  These items seem to be quite relevant to both operating company audit committees and audit committees of fund boards.

1. Closely monitor the impact of the financial crisis/recession on the company; focus on financial forecasts and early-warning indicators.  
   
   
2. Assess the company’s exposure to third parties in financial distress.
   
   
3. Understand the impact of the financial crisis on the company’s financials—particularly the balance sheet.
   
   
4. Focus on fair value and liquidity disclosures.
   
   
5. Make sure your risk discussions with management are healthy and productive.
   
   
6. Help the company and the board prepare for change.
   
   
7. Take a hard look at opportunities to improve the audit committee’s effectiveness.
   
   
8. Be sensitive to the strains on the CFO[, CCO], internal auditor, and finance organization.
   
   
9. Expand the audit committee’s information sources.
   
   
10. Monitor the tone from leadership and throughout the organization.

The full text of the ACI's "Ten To-Do's for Audit Committees in 2009" is available at:  http://www.kpmg.com/aci/docs/ACI_Ten_To_Do_for_Audit_Committees_2009.pdf

For easy access by Forum members, we have added the document to our permanent collection of audit committee resources on our Directors' Resource Center at:  http://www.mfdf.com/members/DirectorsResourceCenterMembersOnly.html#Audit