The risks around financial reporting have never been more real for audit committees. Increasing pressure from regulators and economic events, combined with massive changes in accounting rules looming on the horizon, should be worrying audit committees like never before.
Accounting experts point to several sections of corporate financial statements where audit committees should pay close attention to the numbers—both how the numbers are reached in current reporting periods, as well as how that accounting process will change in the future. And it takes more than a passing glance at the numbers for audit committees these days to discharge their duties properly, warns John Barry, a partner with PricewaterhouseCoopers and leader of the firm’s corporate governance practice.
