The Role of the Audit Committee for Establishing Effective Risk Management and Internal Control
ISBN
978-3-486-70554-6
Type
book section
Date Issued
2011
Editor(s)
Lück, Wolfgang
Abstract (De)
Members of the audit committee are said to have "a part-time job with full-time responsibilities". Over the years various corporate governance codes have increasingly expanded the roles and responsibilities of the audit committee. Today, audit committee members generally face increased regulation, imposed practices, and liability risks higher than other board committees combined.
Audit committees are thus not only considered to help managing financial, operational and compliance risks by means of enhancing the quality of financial reporting, but viewed as essential assurance providers that play an important role in the governance of a company. However, the audit committees' potential for active influence in the running of an organization's risk management and internal control system is frequently undermined. This is since audit committee members are often more absorbed with the oversight of the respective functions (i.a., the external and internal audit) than with the underlying processes and activities (i.e., risk management and internal control systems).
The objective of this paper is to provide insights into the demanding role of audit committees, particularly with regard to effective risk management and internal control
Audit committees are thus not only considered to help managing financial, operational and compliance risks by means of enhancing the quality of financial reporting, but viewed as essential assurance providers that play an important role in the governance of a company. However, the audit committees' potential for active influence in the running of an organization's risk management and internal control system is frequently undermined. This is since audit committee members are often more absorbed with the oversight of the respective functions (i.a., the external and internal audit) than with the underlying processes and activities (i.e., risk management and internal control systems).
The objective of this paper is to provide insights into the demanding role of audit committees, particularly with regard to effective risk management and internal control
Language
German
Keywords
Audit committee
audit committee members
role of audit committee
board
board of directors
directors
corporate governance
governance
risk management
internal control
internal control system
internal audit
assurance
assurance services
risk
control
oversight
management
HSG Classification
contribution to scientific community
Refereed
No
Book title
Jahrbuch für Wirtschaftsprüfung, Interne Revision und Unternehmensberatung 2011
Publisher
Oldenbourg Wissenschaftsverlag
Publisher place
München
Start page
103
End page
114
Pages
12
Subject(s)
Eprints ID
97566