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Should the CAE educate the audit committee?

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.

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Question ajoutée par Utilisateur supprimé
Date de publication: 2013/07/28
Waqayan Al Waqayan
par Waqayan Al Waqayan , Secretary of Sharia Supervisory Board (SSB) , Ahli United Bank (AUB)

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?!

Fakhar Syed ACCA CPA CFC CICA
par Fakhar Syed ACCA CPA CFC CICA , Senior Management Accountant , Alijarah Holding (Public Joint Stock Company)

CAE should provide updates to audit committee members on critical issues, on the internal environment at the organization, educate audit committee members on relevant risks and risk management strategies, work with general counsel on various governance and internal control matters, work with the audit committee to design the internal audit charter, activity’s mission, strategy and focus.
But Should not educate audit committee members on new governance initiatives and emerging compliance trends, do not assist in preparing for meetings & are not involved in conducting orientation for new board/audit committee members.
I hope i have tried to clarify the responsibilities please do let me know if i have missed out any point.
Regards Fakhar

Mir Mujtaba Ali
par Mir Mujtaba Ali , Internal Audit Manager , Confidential

Yes, agree with explanation

Utilisateur supprimé
par Utilisateur supprimé

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.

Mustafa Fida Hussain karimi
par Mustafa Fida Hussain karimi , Head Of Internal Audit , Al Fardan Exchange LLC

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. 

Samer El-Assi
par Samer El-Assi , Data Intake Associate , Sun Life

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.

Anirudh Vaish Vaish
par Anirudh Vaish Vaish , RELATIONSHIP MANAGER - ASPIRE BANKING SEGMENT , RBL BANK LTD

I REGRET TO SAY THAT I AM NOT IN THE PROFESSION OF AUDIT

SANGEETH  SAJIKUMAR
par SANGEETH SAJIKUMAR , HSE Co-Ordinator/HSE Lead , Pepco Engineering L.L.C

I dont know  what is this 

Mohamed Sobhy
par Mohamed Sobhy , Cost Accountant , Apex للتوريدات

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

Muhammad Usama Hassan
par Muhammad Usama Hassan , HR Assistant / IT Support , BOT ASSOCIATES (PRIVATE) LIMITED

In general, the role of the Chief Audit Executive (CAE) is to provide independent and objective assurance to the organization's board of directors, audit committee, and senior management regarding the effectiveness of the organization's governance, risk management, and internal control processes. The audit committee is a subcommittee of the board of directors responsible for overseeing the organization's financial reporting, internal controls, and audit processes.

One of the responsibilities of the CAE is to educate the audit committee on the organization's governance, risk management, and internal control processes. This is important because the audit committee is responsible for overseeing these processes, and they need to have a clear understanding of them to fulfill their duties effectively. Therefore, it is generally appropriate for the CAE to educate the audit committee.

However, it is important to note that the CAE's role is not to dictate to the audit committee or make decisions on their behalf. Rather, the CAE's role is to provide the audit committee with the information they need to make informed decisions. The audit committee ultimately retains responsibility for overseeing the organization's financial reporting, internal controls, and audit processes.

In summary, the CAE should educate the audit committee on the organization's governance, risk management, and internal control processes, but should not overstep their role by making decisions or taking over the audit committee's responsibilities.

Hesham Morgan
par Hesham Morgan , مشرف عام مخازن , pladis

YES,And give them training courses and update them constantly

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