The Audit Committee Handbook, 5th Edition

by Louis Braiotta (Alfred Univ.); R. Trent Gazzaway; Robert Colson; Sridhar Ramamoorti

• ISBN13: 9780470616062
• ISBN10: 0470616067
• Format: eBook
• Copyright: 2010-02-01
• Publisher: Wiley

Summary

The classic handbook to audit committee responsibilities-completely updated to cover the latest guidance with practical insights on the new functions of the audit committee.Now containing the newest regulatory guidance impacting audit committees, including new chapters on audit oversight and updated discussions on fraud risk, the Fifth Edition helps your audit committee plan its agenda and achieve its mission in corporate governance.The Audit Committee Handbook, Fifth Edition guides you to:Understand the role and responsibilities of the audit committee with a general update and reality check on auditing cycle activitiesIdentify the developments that impact audit committee practices and the most current techniques and strategies for committee meetingsDevelop a repertoire of effective strategies to help the board of directors discharge its fiduciary responsibility to shareholdersPrepare a periodic assessment of professional development activities and an informed review of both audit processes and financial reporting processesA must-have for all audit committee members, board directors, corporate secretaries, CEOs, CFOs, and auditors involved in the accounting practices of their firms, The Audit Committee Handbook, Fifth Edition is the most authoritative work on audit committees in the marketplace.

Table of Contents

Preface

Getting Acquainted with Your Responsibilities

Corporate Accountability: Focus on the Audit Committee

Appropriate Accounting Skills

Internal Control Oversight

Auditor Oversight

Audit Committee Resources

Transactional Economics

The Nature and Importance of Corporate Accountability

Developments in Corporate Accountability

Corporate Accountability and the Audit Committee

Conclusion

Sources and Suggested Readings

Audit Committees: Basic Roles and Responsibilities

Organization of the Audit Committee

The Audit Committee Functions

The External and Internal Auditing Process

Sources and Suggested Readings

The External Users of Financial Reporting Information

Introduction

The Investors

Credit Grantors

Regulatory Agencies

Other Outside Constituencies

Important Developments in Business Reporting and Assurance Services

Benchmarking

Sources and Suggested Readings

The Legal Environment of the Audit Committee

General Legal Responsibilities

Other Federal Provisions Related to Fraud

Lessons for the Audit Committee from litigation

Guidelines for Minimizing Legal Liability

Sources and Suggested Readings

Rules of the Road: Financial Reports and Their Audits

An Overview of U.S.Generally Accepted Auditing Standards

An Analysis of the Auditing Standards

Integration of Auditing and Related Accounting Standards

Attestation Engagements

International Auditing Standards

Sources and Suggested Readings

The Planning Function of the Audit Committee

Planning the External Audit

Financial Statement Assertions

The Relationship between Risk and the External Audit

The Engagement Team

Types of Audit Tests

Evaluating the External Audit Plan

Sources and Suggested Readings

Qualitative Factors That May Influence the Determination of Materiality

Example Audit Planning Schedule

Planning the Internal Audit

Components of the Internal Audit Plan

Enterprise Risk Management

Oversight and Reporting

Sources and Suggested Readings

The Monitoring and Reviewing Functions of the Audit Committee

Monitoring the System of Internal Control

Definition and Basic Concepts

Responsibility for the System of Internal Control

Reporting Requirements

Audit Committee Expectations

Sources and Suggested Readings

Evaluating the Internal and External Audit Function

Selecting and Staffing an Internal Audit Function

Monitoring the Internal Audit Function

Selecting and Evaluating an External Auditor

Reporting by the External Auditor

Sources and Suggested Readings

Communications Between Auditors and Audit Committees

Audit Committee's Review Objective

Accounting Policy Disclosures

Guidelines for Reviewing Accounting Policy Disclosures

Sources and Suggested Readings

A Perspective on Fraud and the Auditor

Meaning of Fraud in a Financial Statement Audit

The External Auditor's Responsibility

The Internal Auditor's Responsibility

Investigating Known Fraud

The Audit Committee's Oversight Approach to Fraud Risk Assessment

Sources and Suggested Readings

The Audit Committee, Corporate Culture, and Tone at the Top

Questionable Foreign Payments

Corporate Perquisites and Executive Compensation

Executive Compensation

Corporate Contributions

Conclusion

Sources and Suggested Readings

The Reporting Function and the Audit Committee

Independent Auditors' Reports

The Auditors' Reports on Audited Financial Statements

Other Auditing Opinions

Other Reports of the Auditors

Sources and Suggested Readings

The Audit Committee's Report and Concluding Observations

Purpose of the Audit Committee's Report

Guidelines for Preparing the Report

Concluding Observations

Sources and Suggested Readings

Appendix

About the Authors

Index

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