Newsletter | Volume 1

Issue I
Issue II
Issue III
Issue IV
Issue V
Issue VI
Issue VII
Issue VIII
Issue IX
Issue X
Issue XI
Issue XII
Issue XIII
Issue XIV
Issue XV
Issue XVI
Issue XVII
Issue XIX
Issue XX
Issue XXI
Issue XXII
Issue XXIV
Issue XXV
Issue XXVI

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Implications of audit regulation and directive to restore integrity and trust between companies, markets, and the audit committee

Audit committee members and external auditors, in particular, are the most important gatekeepers to provide attention to financial reporting and financial fraud processes. Each function has a responsibility to foster high-quality, reliable financial reporting. Stakeholders recognise that audit committee members and statutory auditors exercise a significant amount of judgment on a day-to-day basis, and are not in the business of second-guessing good faith judgments. The focus of the seminar is to provide updated guidance on how audit committee members can carry out their responsibilities, and how auditors can comply with relevant auditing standards in their audit work, based on the audit reform.

Implementing efficient changes
Winning in a vibrant economy with a sustainable corporate growth pattern depends on how the business and markets work and build together the high levels of trust and integrity in all interactions with stakeholders. How can the new regulatory and legislative mechanisms on the audit reform and the responsibilities of the audit committee, help to reduce the risks of market failure, minimising unproductive capital and support the resources of public and private companies.

The UK legislation on auditor liability, transparency, and advisory has been implemented. Therefore, Copenhagen Compliance UK LtdĀ® (together with Grant Thornton) will conduct a full day seminar at the 10th annual European GRC Summit in London on the 28th September 2016:

The objective of the workshop is to gain a better understanding of the social and business implications of the legislation, including the role of audit committees in future. How can the new rules and regulations ensure confidence in the statutory auditors reporting, supervision, and independence? P with the company they are auditing - With In other words, how does the Board (or Audit Committee) role as a guarantor to the shareholders and the company's other "stakeholders" affected by this legislative package?
  • What are the new challenges of audit committees will continue to be at the center of the recent audit reforms?
  • How does the audit legislation relate to the statutory review practices of 'public interest entities (PIE) companies?
  • How to improve the purpose of the legislation, to enhance audit quality and auditor independence.

In most European countries the mandates on Audit Committees is in force from June 2016 with additional guidance provided by the oversight and monitoring authorities from June until August. The 10th annual European GRC Summit on the 28-29th September in London will contribute to getting a deeper understanding of the social and business implications of the legislation. How to boost confidence in corporate reporting and strengthen the Board / Audit Committee's future role as a principal benefactor to all stakeholders.

During the seminar, there will be a serious debate on the future function of the audit committee with the participation of individuals and experts that highlight views on the situation from a variety of different angles from, chairs, oversight authorities, lawyer's auditors and advisors.

Therefore, among the speakers are members of the audit committees, board members, and other stakeholders. These speakers will first review the big picture of the new legislation in a Governance, Risk, and Compliance (GRC) context. Then board and audit committee members will share their experiences in their function, role, and responsibilities. Oversight authorities will enlighten the participants on how they will ensure compliance both toward the auditors, audit committee, and stakeholders. Finally, commercial academics together alluring come with summaries and perspectives.

The objective behind the new rules (Regulation 537/2014 and Directive 2014/56 / EC) is to improve audit quality and to restore investor confidence in the available financial information:
  • Emphasize the independence and contribute to a more dynamic audit market in the EU
  • Provide audit committees some tools for better supervision of the statutory auditors

The audit committees will in future have new distinct and enhanced responsibilities on all financial issues. This adjustment of the role, duty and accountability could give rise to a discussion on liability issues. This analysis is needed to ensure that there is no undermining of collegiality in the rest of the board who are not members of the audit committee.

The Board continues to have a collective responsibility for all decisions taken, but will in the future probably use less time on financial matters as audit committee is responsible for some financial issues. Therefore, the Board must ensure that there is increased reporting on all financial matters from the audit committee to the other board members happened to secure information.

On the 28th of September, and the 5th October 2016 we will discuss the consequences of the introduction of the supervision of audit committees at the national level. It is the supervisory authority to monitor and control the audit committee's composition, its competencies, as well as its responsibilities. This change will probably deprive the shareholders of their right to freely elect directors (and compose the audit committee members). When an external third party - which is a public authority - in part will oversee the performance of the core tasks of the audit committee, and not least with different strategic and financial issues as a point of departure from the current practice.

The seminar is held under the Chatham House Rule, to attract the right participants / speakers and to encourage discussions and opinions on Audit Committees future role, tasks, and responsibilities.