Audit Committee

When it comes to jurisdiction over sales taxes, most of us think in terms of state taxes, rather than federal taxes. Yet, as enforcement by the Securities and Exchange Commission earlier this year and the recent debate over the collection of state sales taxes from Internet retailers have shown, these taxes can quickly become a federal issue for public companies.

A lot is happening in the business environment, and like everything else, the audit committee agenda should be responsive to change in it. Based on our observations over the last 12 months and interactions with client audit committees, at roundtables, and with directors at confer¬ences and other forums, we see eight agenda items for audit committees to consider.

In this fifth annual message to directors, KPMG's Audit Committee Institute (ACI) highlights 10 items for audit committees to keep in mind as they consider and carry out their 2012 agendas.

Of the many issues on their plate, audit committee members say they want to devote more time over the next 12 months to IT risk and emerging technologies, risk management, corporate strategy, and the impact of public policy initiatives on the company's compliance, controls, and reporting. Growth and "innovation risk" are also front-and-center.

Tasked with improving their companies’ operations by systematically evaluating and improving the effectiveness of risk management, control, and governance processes, chief audit executives and internal auditors couldn’t be operating in a more difficult time with the Dodd–Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) confronting them.

The economic crisis has been a catalyst for change in the governance landscape. The changes include new regulations enacted as a result of the Dodd-Frank Act, increased regulatory enforcement activities, and increased influence by shareholders and proxy advisory firms. How can directors measure their own effectiveness in this environment?

Current issues for boards of directors. In this issue: next year's proxy season, a new discussion about mandatory auditor rotation, and technology in the boardroom.

Corporate Board Member presents insights from leading advisers on governance trends in the latest volume of this popular series.

In times of market volatility, it’s important for lines of communication between the CFO and the board to be open. Corporate Board Member held a roundtable conversation with financial experts to discuss how the relationship between the CFO, accountants, and boards should ideally function, and how the board can work with the CFO without alienating the CEO.

Upon discovering suspected misconduct, companies should consider whether to launch an investigation to understand the allegations better and determine if remedial action is required.