Audit Committee Proxy Disclosures –Vital to Investor Protection

BDO in the Boardroom

Join BDO's Center for Corporate Governance Amy Rojik as she sits down with Vanessa Teitelbaum, Senior Director of Professional Practice at the Center for Audit Quality (CAQ), to discuss the critical role audit committees play in the integrity of capital markets and how transparent disclosures about their oversight practices can provide significant value in the protection of investors.

Key Takeaways

• Robust proxy disclosures represent an opportunity for the audit committee to make clear to investors how the audit committee conducts its oversight responsibilities to promote audit quality
• Most significant noted proxy disclosure increases in 2021 relate to the audit committee’s oversight of cybersecurity
• Expanded audit committee disclosure may present a mitigating safeguard to investor concerns of a lack of objectivity by the audit committee
• Audit committees may find value in benchmarking from the Barometer, along with other CAQ resources, to provide practical data to help inform judgment on their own oversight and resulting disclosures
• Audit committees are reminded to pay close attention to the SEC Regulatory Flexibility Agenda and proposed rule-making/comment letter process

Resources

Access the CAQ’s 2021 Audit Committee Transparency Barometer here.