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Audit committee effectiveness hinges on understanding

the business.

Audit committee members say a better understanding additional expertise in technology/cyber security as being
of the business and the company’s key risks would most key to greater effectiveness, since it would strengthen
improve their oversight effectiveness. They also view their ability to oversee those risks.
Q What would most improve your committee’s overall

effectiveness? (select up to three)

Better understanding of the business and risks 39%

Additional expertise—technology/cyber security 31%

Greater willingness and ability to challenge management 27%

Greater diversity of thinking, background, 24%
perspectives, and experiences
More in-depth financial reporting and audit expertise 19%

Additional expertise—M&A, industry knowledge, 18%
risk, international, or other area

Deeper engagement by committee members 18%

Bringing “fresh thinkers” onto the committee 18%

Better pre-meeting materials 17%

Improved management of meeting agendas 11%

Clear succession plan for audit committee chairmen/members
7%

Removal of underperforming director(s) 5%

Better chemistry/dynamics 4%

Other 3%

Multiple responses allowed

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