The requirements and practices of audit committees have evolved significantly in the past few years with greater importance being placed on the effectiveness and accountability of its members. Recent developments in corporate governance have intensified scrutiny of audit committees on their key role in the corporate reporting process. As a result, audit committees face the formidable challenge of effectively overseeing the corporate reporting process and protecting investors’ interest.
In this ever-changing regulatory environment, members of audit committees need to have the relevant skills set and experience to effectively function in their role.
Although the regional regulatory environment is unlikely to change at the pace being experienced in North America and Europe, in particular, the underlying investor concerns that drove these changes are very germane to regional companies and shareholders alike, and there is growing recognition of the need to be proactive in following international best practice in corporate governance generally.
Audit committees in the region therefore need to be adopting international best practice in defining their composition, role, and modus operandi, so as to continually build public trust.
The ultimate objective of the establishment of the Caribbean Association of Audit Committee Members is to improve the investment environment in the Caribbean by increasing the level of confidence of investors in the integrity of financial reporting and investor information.