Refocusing the audit committee
One of the audit committees was facing the following challenge:
- an existing audit and risk committee;
- a new executive team;
- a chief executive who wanted to refocus the committee (the existing focus was financial and reactive);
- significant change occurring in the entity; and
- a lack of understanding at some levels about the role of a risk committee.
The committee took this five-stage approach to change:
- change the risk and audit committee composition;
- draft and agree a committee charter;
- reduce the level of involvement of audit, and outline how the balance of time should be spent in the meeting;
- expand the scope of focus on the organisational change; and
- involve the executive team.
The result:
- a well-defined and agreed audit and risk charter;
- a committee that was much more focused on managing risk within the entity and its function in the public sector;
- the senior team using the committee for challenge and understanding aspects of risk; and
- keeping the financial focus as important but limited.