Audit committees matter. As the representatives of shareholders, they are critical to the integrity and the quality of the audit. In those countries where audit committees have the authority and responsibility to oversee final preparation of the financial statements and the audit, quality has improved measurably.
Providing more and better information to audit committees on a consistent basis will not only make them more effective, it will also help their decision-making around whether the audit firm should be reappointed. We believe there should be more transparent reporting by audit committees to give regulators, investors and the market more insight into both the audit and the appointment of the company’s auditors.