Financial reporting, compliance, and the risk and internal control environment will continue to be put to the test in 2017 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 U.S., UK, and elsewhere. Focused, yet flexible agendas— exercising judgment 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 eight items that audit committees should keep in mind as they consider and carry out their 2017 agendas.

• Reinforce the audit committee’s direct responsibility for the external auditor.
• Give non-GAAP financial measures a prominent place on the audit committee agenda.
• Monitor implementation plans and activities for major accounting changes on the horizon—particularly the new revenue recognition and lease international accounting standards.
• Monitor key regulatory initiatives to enhance transparency of the audit process.
• Redouble the company’s focus on ethics, compliance, and culture.
• Focus internal audit on key areas of risk and the adequacy of the company’s risk management processes generally.
• Quality financial reporting starts with the CFO and finance function; maintain a sharp focus on leadership and bench strength.
• Make the most of the audit committee’s time together—inside and outside the boardroom.

Also see On the 2017 Board Agenda for a wider discussion of upcoming governance matters.