Quotes: US MENA   Enter Symbol: NewsLetter: Search: advanced

Audit committees cite increased risks, complexities as top challenges for '14  Join our daily free Newsletter

MENAFN - The Peninsula - 04/02/2014

No. of Ratings : 0
Add to Mixx!


 


(MENAFN - The Peninsula) Audit committees around the world have highlighted that it is becoming increasingly difficult to oversee major risks in addition to financial reporting due to heavy workloads, according to KPMG's 2014 global audit committee survey.

CFO succession and risk oversight are also key challenges as companies face increasingly complex regulatory and operating environments. KPMG interviewed 1,500 audit committee members in 34 countries.

Although the survey found that many audit committees have primary responsibility for a number of critical risks facing the company such as legal/regulatory compliance, anti-bribery/corruption, financial, and/or IT and cyber security risks 43 per cent said it is becoming "increasingly difficult" to oversee those risks.

Jeyapriya Partiban, Partner, Risk Consulting, at KPMG in Bahrain said: "Audit committee agendas are not getting any lighter. Overseeing financial reporting and audit, and ensuring those activities have the right resources and talent, is a job in itself. This survey suggests that perhaps it is time to step back and assess whether the audit committee's risk oversight responsibilities are adequate and appropriate."

While audit committees are satisfied with much of the information they receive about key risks facing the company, nearly one in three said information about cyber security, emerging technologies, and the company's growth and innovation plans "needs improvement."

Jeyapriya added: "An overloaded audit committee is a less effective audit committee. Boards and management teams should assess the adequacy of their governance processes in critical areas. Companies need to be better prepared to respond to significant regulatory change, ethics and compliance issues, business model disruption, and major technology developments."

The survey found more than 80 per cent of respondents said internal audit's role should extend beyond the adequacy of financial reporting and controls to include other key risks facing the business. However, only 50 percent said internal audit currently has the skills and resources to be effective in the role they envision. Only 62 percent said they are satisfied the company has identified "leading indicators" that show where the company is headed and whether its strategy is on track.

The top challenges facing companies are: uncertainty and volatility; operational risk; human resources; technology change; business model disruption; cyber risk; and innovation.

 






  MENA News Headlines


 
Live Currency Rates






Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country
Marketwatch News
UPI News
Comtex News

IPO News
Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

US Markets Details

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Investment Game
Economic Calendar
Financial Glossary

My MENAFN
Portfolio Tracker

Voting

Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2000 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help