Financial reporting, compliance, and the risk and internal control environment will continue to be put to the test in 2018 – by slow growth and economic uncertainty, technology advances and business model disruption, cyber risk, greater regulatory scrutiny and investor demands for transparency, as well as dramatic political swings and policy changes in the UK, US and elsewhere. Focused, yet flexible agendas – exercising judgement about what does and does not belong on the committee’s agenda, and when to take deep dives – will be critical. 

Drawing on insights from our recent survey work and interactions with audit committees and business leaders over the past 12 months, we have highlighted seven items that audit committees should keep in mind as they consider and carry out their 2018 agendas.

• Stay focused on job No. 1 – financial integrity reporting
• Financial reporting quality starts with the CFO and the finance organisation; maintain a sharp focus on leadership and bench strength
• Monitor management’s progress on implementing new international revenue standard and other accounting changes on the horizon, and stay updated on tax legislation and regulatory developments
• Focus internal audit on the company’s key risks, beyond financial reporting and compliance
• Reinforce audit quality and transparency
• Monitor the impact of the business and regulatory environment, as well as tone at the top and corporate culture, on the company’s compliance programmes
• Make the most of the audit committee’s time together – effectiveness requires efficiency