Report on the Audit Committee Survey published – increased demand for audit committee expertise in accounting and auditing
The findings of the Audit Committee Survey, published today by Financial Supervisory Authority (FIN-FSA) and Finnish Patent and Registration Office (PRH), indicate that continuously changing legislation and the economic environment make the responsibilities of audit committees more demanding in terms of workload and time management. The more prominent role of the audit committee and the increasing complexity of financial reporting require strong competence in accounting and audit matters.
Based on the survey results, FIN-FSA and PRH wish to draw attention to the following:
- Audit committees’ role is to support the decision-making and efficient working of the board of directors
- There is an increased demand for audit committee expertise and independence
- Effective audit committees have clearly defined procedures
- Audit committees play a key role in the selection of the auditor
- Audit committees should monitor the auditor’s performance and independence on a regular basis
- Audit quality indicators serve as a tool for audit committees in selecting and monitoring the auditor
- Audit committees play an important role in contributing to the integrity of financial reporting.
The EU Audit Reform strengthened the role of audit committees, and many requirements that had previously been seen as best practice are now enforceable law. The EU Commission encourages regulators to engage with audit committees and help make them aware of their new responsibilities and more prominent role. For these reasons, an EU-level Audit Committee Survey was prepared by the Committee of European Auditing Oversight Bodies (CEAOB) with the objective of helping regulators to better understand how audit committees are operating and what challenges they are facing in carrying out their responsibilities.
FIN-FSA and PRH collaborated in conducting the Audit Committee Survey of CEAOB in 2019. FIN-FSA is the authority responsible for monitoring and assessing the performance of audit committees, and PRH is responsible for audit-related market monitoring tasks. The survey questionnaire was sent to audit committees and boards of directors, responsible for carrying out audit committee tasks, of public interest entities (i.e. listed companies, credit institutions and insurance undertakings). The report provides a summary and analysis of 122 responses.
For further information, please contact
- FIN-FSA: Tiina Visakorpi, Head of Division, tiina.visakorpi(at)fiva.fi or tel. +358 400 606 734
- PRH: Riikka Harjula, Director, riikka.harjula(at)prh.fi or tel. +358 50 525 8076
Report on the Audit Committee Survey – February 2020 (pdf)
FIN-FSA website: IFRS > Press releases and publications