Sample Questions for Audit Committee Members to Ask

In brief: These sample questions, included in the Report of the NACD Blue Ribbon Commission on the Audit Committee, highlight important matters that should be considered for discussion with the audit committee. Questions are intended to be addressed by management and auditors in collaboration with the audit committee. 

This resource can help your board:

• Review risk-management processes.

• Identify areas of improvement for internal controls.

• Oversee internal and external auditors.

Most relevant audiences: audit committee members and those who report to or meet with them

The focus on the board’s compensation committee has never been sharper. The components of compensation plans and the link between compensation and company performance are under intense scrutiny from shareholders, employees, policymakers, the media, and other stakeholders. The Report of the NACD Blue Ribbon Commission on the Compensation Committee revisits NACD’s 2003 Report of the NACD Blue Ribbon Commission on Executive Compensation to highlight the new environment in which compensation committees—and, more broadly, boards—are now operating. It recommends that the compensation committee and board work together to establish an executive compensation philosophy that supports the company in creating long-term, sustainable value.

The report includes ten specific recommendations for compensation committees to consider when evaluating their compensation philosophies. It also provides practical tools, such as sample compensation committee charters, a compensation committee assessment, and guidance on executive employment contracts.