Audit Committee Blueprint

In brief: Audit Committee responsibilities have moved beyond the numbers, with the committee taking on oversight related to cybersecurity, ESG, and talent management. This blueprint looks at 10 essential areas of audit committee focus and provides members of the audit committee and the full board with insight into what is happening now and what to expect in the future. The report—developed by KPMG and NACD in collaboration with a diverse, influential group of directors and notable governance practitioners—provides key insights into the growing complexities outside of the committee’s core responsibilities on financial and audit matters that audit committee members must now manage, as well as discussion related to internal audit, transparency in proxy disclosure, and risk management.

This blueprint can help boards to

• consider new approaches to disclose risk – particularly with the forthcoming SEC climate disclosure rules.
• determine what issues should be on the audit committee’s risk radar, how those issues are evolving, and whether communication with management is giving the board the right information to carry out effective oversight; and
• understand the expanding areas of oversight for the audit committee;

Most relevant audiences: directors of public and private organizations, audit committee chairs, audit committee members, committee chairs, lead directors, board chairs, CEOs.