Audit Committees – Setting Up An Internal Audit Function – From The IIA, With Comments

I have attached below a link to this discussion by the Institute of Internal Auditors. This is a worthwhile discussion for key areas, although broad and lacking in specifics. I’m not being critical in that comment – this is a detailed and time intensive endeavor. I will say that as an audit committee member I would have more involvement in the process than these points indicate. As an audit committee member I want to be sure that internal audit is very helpful to me in accomplishing my oversight responsibilities. And that approach is in keeping with director and audit committee member responsibilities and the business judgment rule, and is beneficial to everyone including the shareholders, the audit committee, the board, the executive offers, internal audit, the external auditor, and others. Click on the following link for the IIA discussion – CLICK HERE

Dave Tate, CPA (California, inactive), Attorney, San Francisco and California
Tate’s Excellent Audit Committee Guide (updated October 2015)

Tate’s Excellent Audit Committee Guide – Updated October 2015 – 172 pages – Enjoy, Use, and Pass It Along


Click on the following link for the 172 page, October 2015, updated Tate’s Excellent Audit Committee Guide – enjoy, use and pass to others who would find it useful – updated regularly –

Dave Tate

Managing Risk: Panel Finds Lawyers are Essential at the Board Level

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Dave Tate, Esq. comment. Interesting discussion, but too broad. A lawyer with a background that the board needs, would be helpful, but you also wouldn’t argument, for example, that everyone who has been a CEO would make a good board member, or that anyone who is or has been a CPA would be a good choice for the audit committee.  

Derivatives rule proposal: More work for overburdened fund directors – 12/14/2015

The Securities and Exchange Commission’s proposals to modernize its regulation of fund use of derivatives and leverage again increase the scope and complex

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Dave Tate, Esq. comments. Very complicated stuff for directors and independent directors, to be sure.

AICPA Proposes New Compilation Standards

The American Institute of CPAs Accounting and Review Services Committee has issued three proposed Statements on Standards for Accounting and Review Services, or SSARS, related to prospective and pro forma financial information.

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Dave Tate, Esq. comments. I don’t get this. SSARS 21 is just now being implemented. Now more changes? This doesn’t look good for the auditing profession.

PCAOB Adopts Rules Requiring Disclosure of the Engagement Partner and Other Accounting Firms Participating in an Audit

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Dave Tate, Esq. comments. Time will tell, but I don’t believe this requirement will be a big deal. Other increased disclosures, such as relating to evaluation of internal controls and governance, would be more important.  

6 Steps Corporate Counsel Must Take to Protect Themselves During Government Investigations | Corporate Counsel

Click on the following link for the discussion:

Dave Tate, Esq. comments. A good reminder and discussion. Act diligently and speak up. Merriam-Webster definition of the term “speak up”: to speak loudly and distinctly; to express an opinion freely.