Audit Committee Priorities for 2013

In 2013, audit committees will face a host of governance challenges as economic uncertainty and political turbulence, globalization, digitization, increased government regulation and stepped-up enforcement continue to reshape the business and risk environment.

To help audit committees and boards meet these and other challenges in the year ahead, KPMG's Audit Committee Institute (ACI) has published its Audit Committee Priorities for 2013, highlighting key issues that should be top-of-mind for every audit committee as they shape their 2013 agenda.

As summarized below—and detailed in the full report—these 2013 priorities address five "core" audit committee responsibilities and three areas in which audit committees can play an important role in supporting the board on a broader range of governance issues.

Audit Committee Priorities

• Stay focused on job #1: Financial accounting & reporting and internal controls
• Reinforce audit quality and set clear expectations for the external auditor
• Monitor the impact of the business and regulatory environment on the company's compliance programs
• Understand the company's significant tax risks and how they are being managed
• Make sure internal audit is properly focused and fully utilized

Broader Governance Matters

• Consider whether the board has the right composition and committee structure to provide effective risk oversight
• Understand how digitization and social media are transforming the business landscape—and impacting the company and board oversight
• Set the tone and closely monitor leadership's commitment to that tone, as well as the culture throughout the organization globally