The Audit Committee: How Should It Handle ERM?

摘要

The role of the audit committee seems to be constantly changing. Audit committees are being given ever-greater responsibilities lately. Some authorities seem to use them as a dumping ground for whatever extra responsibilities they want companies to shoulder. The latest controversy may be over enterprise risk management (ERM). Should it be added to the audit committee agenda? And, if so, how shouldrnthis be done? The role of the audit committee seems to be in a constant state of change. The translation is that audit committees are constantly being charged with ever-greater responsibilities. Authoritative bodies seem to think that the audit committee is the appropriate (or at least easy and visible) entity for whatever additional responsibilities it wishes to place on subject companies. Some have suggested that enterprise risk management (ERM) should be added to the audit committee agenda. Specifically with respect to ERM, I believe a careful and considered look at the roles and responsibilities involved is appropriate.