IOD: The role of the Audit Committee in respect of risk

IOD: The role of the Audit Committee in respect of risk

• 19 June 2025
• Regulatory Compliance and Legislation
• South African Accounting Academy

Summary:

The Institute of Directors (IOD) has drawn attention to a document published on the role of the Audit Committee in respect of risk.

Article:

There is usually a concern that risk governance might be focused on activities and operational issues without sufficient attention being paid to sustainability and external factors at industry, regional, national and global levels.

This document seeks to guide audit committees in their oversight of risk management processes in order that they might be better prepared and their boards and management better equipped to address risk in all its guises.

Contents:

• Risk governance structure and reporting
• Responsibility for risk management
• Scope of risk
• Role of the audit committee in relation to risk
• Conclusion
• Annexure A – Risk governance structure and reporting
• Annexure B – Previously published position papers and alerts

The original position paper was issued in December 2009.

Click here to download the 12-page document:

https://cdn.ymaws.com/www.iodsa.co.za/resource/collection/69268B39-7C83-4C6F-90E8-0642EDC63286/ACF_Position_paper_6.pdf 

Relevance to Auditors, Independent Reviewers & Accountants:

• As a practitioner, you may need to advise your clients, who have audit committees, on their functions and what is expected of them by investors.
• The audit committee has wide ranging roles and bears significant responsibility in supporting the Board.
• Audit committees should be aware of guidance issued by regulators, such as the IOD.

Relevance to Your clients:

• The audit committee has wide ranging roles and bears significant responsibility in supporting the Board.

• Audit committees should be aware of guidance issued by regulators, such as the IOD.
   

0 COMMENTS

LEAVE A COMMENT