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Global Audit Committee

Survey — Results

Given expectations for slow growth and economic and

political uncertainty, technology advances and business
model disruption, cyber threats, greater regulatory
scrutiny, and investor demands for transparency, it’s

hardly surprising that most audit committees around
the world point to risk management as the top

challenge facing the company in the year ahead. More
than 40 percent of respondents say their risk

management systems require substantial work.

Audit committees, by and large, continue to express
confidence in financial reporting and audit quality; yet,
along with risk management, our 2017 Global Audit
Committee Pulse Survey highlights ongoing concerns
about legal and regulatory compliance, managing
cyber security risk, and managing the control
environment in the company’s extended organization.

Of the more than 800 audit committee members
responding to our survey, nearly 4 in 10 said the
committee’s effectiveness would be most improved by
having a “better understanding of the business and key
risks,” while nearly a third said additional expertise
related to technology or cyber security would be helpful.
Most audit committees say their organizations have a
long way to go in their efforts to implement major
new accounting standards. Fewer than 15 percent
report a clear implementation plan for the new
revenue recognition standard, and fewer than 10
percent reported a clear plan for implementation of
the new leasing standard. And of those whose
companies are affected by the Organisation for
Economic Co-operation and Development’s (OECD)
country-by-country tax reporting, many expressed
concern about the lack of clarity or communication
with their committee on that issue. Survey
respondents also cited ongoing opportunities to
improve their company’s ability to manage cyber risks.

© 2017 KPMG Central Services, a Belgian Economic Interest Grouping (“ESV/GIE”) and a member firm of the KPMG network of independent member firms affiliated with KPMG International
Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in Belgium.