The Audit Committee News informs you about all of the latest trends in its core focus areas of corporate governance, risk management & compliance and corporate reporting. The ACNews features articles penned by experts from Switzerland and many other countries around the world.
Esteemed Board members,
Upon reading this newsletter, most of you who are Board members in public limited companies will already have successfully closed their 2018 financial reporting. This is why we think that this is an ideal moment to look at some other pressing issues that have nothing to do with the annual closing.
With nearly 500 transactions to the tune of more than CHF 130 billion, 2018 was a good year for M&As in Switzerland in comparison to the five previous years. Timo Knak shows how the increasing acceptance of private equity is actually due to a shift in paradigm. Venture capital is an important source of financing for start-up companies. André Güdel shows us in his article how crowdfunding and crypto-crowdfunding provide interesting alternatives to traditional venture capital.
Global and European political developments have created upheavals, especially concerning trade agreements and tariffs. Michel Anliker shows that this will raise trading costs. It will also cause more legal complexity. This is why it is more essential than ever before to understand one’s supply chain and to have it under control.
I have the pleasure to speak about audit committees’ contribution to the quality of an audit. The International Organization of Securities Commission (IOSCO) published a document on this. Divided into seven different topics, the document has no fewer than 86 questions that help to explain the audit committee’s best-practice contribution to the quality of an audit.
The EU fitness check on the future of corporate reporting is finished. In his piece, Georg Lanfermann explains that while not much action is needed in regard to corporations’ accounting, there is a dire need for linking financial with non-financial information. However, it is questionable just to what degree this will make the financial reporting more meaningful. Which brings us to the next topic: Uwe Fülbier and Hendrik Rupertus comment on the already existing information overload.
One of the central aspects of any corporation is its risk management, which includes the inventorization of all risks as well as their quantification and lining them up with the corporate strategy. Benjamin Wall explains that a one-dimensional view is no longer sufficient and that a Dynamic Risk Assessment will help recognize dependencies and interconnections between risks.
I hope you will find this an interesting read. Please feel free to let us know your opinion or if there is a particular topic you would like to hear about in this newsletter. Your opinion matters to us.