Question

"How audit committees can improve disclosure “ by By Ken Tysiac . Please hrlp me find the key points to this article.

Answer 1

The percentage of audit committees providing public disclosure on many key metrics has increased in recent years, but opportunities for greater transparency remain, according to a yearly report published Wednesday by Audit Analytics and the Center for Audit Quality (CAQ), which is affiliated with the AICPA.

An examination of public company proxy disclosures demonstrates that increasing numbers of companies in the S&P 500, the S&P Mid Cap 400, and the S&P Small Cap 600 have increased the information they provide to the public since 2015 in a number of areas.

There are many opportunities and the key significant matters, according to the Ken Tysiac,It include:

         Significant areas addressed with the auditor. As auditors are starting to disclose critical audit matters in compliance with a new PCAOB standard, audit committees can provide their perspective on these matters and others, if appropriate.

          Disclosures around firm evaluation and audit partner selection. These may include discussion of how often the audit firm is evaluated, the mechanism and key considerations for evaluation, and the process for selecting the audit partner.

         Transparency about audit firm compensation. Disclosures may include the level of detail related to fees that is provided to the audit committee; how the audit committee considers the number of hours in balancing the need for an effective, efficient audit; and what causes changes in fees when they occur.