Register now or log in to join your professional community.
Do not expect all the audit committee members to possess sufficient accounting ,audit and risk management knowledge and experience . In a perfect world it would be great if they do ! As we don't live in such a world ,someone should take the initiative to educate them ,and I believe that this " someone " should be the CAE ! During the brief period when I established and managed an internal audit activity for a multi - billion dollar company ,I took it upon myself to keep open communication lines with management in general and the audit committee in particular in order to keep them abreast of developments in areas relevant to their responsibilities .In the case of the audit committee ,I used to share with them news,articles and publications relating to accounting,audit ,risk management ,corporate governance and other areas of interests . And to make things more interesting ,I used to send them a monthly quiz ! I was pleasantly surprised with the positive reaction of the committee members and their desire to receive more information and quizzes ! In fact ,they were competing to score higher points each time I send a new quiz . I am fully aware that not all audit committee members will act in the same way, but the CAE should at least try and fulfil this educational role . It not only benefits the audit committee members and the organization ,but helps to strengthen the CAE's relationship with the audit committee.
Yes, agree with explanation
Unfortunately there are several rules that you have to remember before having any presentation or communication with the Audit Committee:
1. Most of them are not auditors and don't understand "audit terms"
2. They are busy people and only want to know a very high level overview of controls
3. They would like to hear positive things and don't like negativity.
4. their attention only lasts for about five minutes into your speech and then they begin checking stock quotes and text messages. That means that you are done.
5. They feel that they own you and don't like to be quizzed or confronted.
7. They appreciate the form over the matter, so dress sharp and speak flawless language.
As a CAE, he can definately share his knowledge and inputs with the audit committee members for them to decide as the final decision maker. he can provide them with his views, but this should not be taken that it is CAE responsibility by any law to educate them.
I dont know what is this
Yes, the Chief Audit Executive (CAE) should take an active role in educating the audit committee. While it's ideal for audit committee members to possess strong knowledge of accounting, audit, and risk management, that’s often not the reality. As the CAE, educating the committee helps them make informed decisions, enhances their understanding of internal audit’s role, and strengthens their ability to provide oversight.
By sharing relevant articles, news, and developments in areas like corporate governance and risk management, the CAE helps the committee stay current and effective in their responsibilities. Tools like quizzes or regular updates can foster engagement, build a stronger relationship, and ensure alignment between the internal audit function and the committee.
Yes, the Chief Audit Executive (CAE) should actively educate the audit committee. This education is vital for several reasons:
Understanding the Internal Audit Function: The CAE can provide insights into the role, responsibilities, and methodologies of the internal audit function, helping the committee appreciate its value and contributions to the organization.
Risk Awareness: By educating the audit committee about the organization’s risk landscape, the CAE can ensure that members understand key risks and how internal audit prioritizes its work to address them effectively.
Regulatory and Best Practices: The CAE can inform the committee about relevant regulatory requirements, industry standards, and best practices in internal auditing, promoting compliance and enhancing governance.
Performance Metrics: Educating the audit committee about performance metrics and key performance indicators (KPIs) for the internal audit function enables informed discussions about its effectiveness and alignment with organizational objectives.
Facilitating Informed Decision-Making: A well-informed audit committee can provide better oversight and support for the internal audit function, leading to more effective governance and risk management practices.
Enhancing Collaboration: Education fosters a better working relationship between the CAE and the audit committee, encouraging open communication and collaboration on audit-related matters.
In summary, the CAE plays a critical role in educating the audit committee, which enhances the committee’s effectiveness and strengthens the overall governance and oversight framework within the organization.
CAE is the top of the pyramid and everyone looks for him/her to learn and benefit from their knowledge and expertise.
I believe that continues training and bullet point to highlight what’s new and how to act in different scenario is needed.
A written training material approved by CAE, updated frequently is highly recommended for education.
I REGRET TO SAY THAT I AM NOT IN THE PROFESSION OF AUDIT
It is obliged by "corporate governance" that Board of Directors and members of audit community must have continuos education and laws updates and related matters.
But is it CAE role to do that?!
