On December 30, 2019, the Securities and Exchange Commission (SEC) issued a statement on the role of audit committees in financial reporting. This statement follows a similarly focused report from the Public Company Accounting Oversight Board (PCAOB). Based on discussions with audit committee chairs, the SEC is offering its views to concur, augment and add weight to the PCAOB’s previous guidance. As such, the SEC and PCAOB continue to emphasize the importance of audit committees in ensuring quality financial reporting and quality audits.
This article offers observations and reminders on several potential areas of focus for committee members to consider.