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At last week’s meeting of the SEC’s Investor Advisory Committee, the role of the audit committee was explored in a panel discussion focused on audit committee workload and transparency. The Committee’s consideration of audit committees begins at around the 1 hour and 39 minute mark of the replay of the afternoon webcast. The agenda described the topic as follows:

This panel will focus on the role of the audit committee, which is rapidly changing, where many audit committees now oversee a variety of emerging risks while balancing an ever-increasing workload. Simultaneously, there is a larger focus on the audit itself with the PCAOB taking a fresh look at auditing standards. Risks continue to emerge and evolve. The presenters and the panel will explore how audit committees are keeping pace with shifting responsibilities and priorities, and whether existing audit committee disclosures adequately benefit investor needs.

Two presentations were made available to the Investor Advisory Committee: one presentation titled “Audit Committee: The Kitchen Sink of the Board,” was presented by Lauren Cunningham, Keith Stanga Professor of Accounting, University of Tennessee, while the other presentation was titled “Audit Committee Transparency Barometer,” which was presented by Vanessa Teitelbaum, Senior Director, Professional Practice, The Center for Audit Quality. A panel discussion followed which included four audit committee chairs, including Robert Herz, chair of the Morgan Stanley Audit Committee and formerly chair of the FASB and a member of the IASB and the Value Reporting Foundation.

The topic of audit committee disclosure has been something that the SEC Staff has been discussing on and off for over the past decade or so. This discussion of the Investor Advisory Committee may ultimately evolve into some further recommendations on expanding audit committee disclosures.

– Dave Lynn