Chapter 6

Oversight, Compliance, and Risk Management1

A New Focus on Risk Management

Managing risk is a critical issue facing companies today, and audit committees are being asked to shoulder much more responsibility than ever before. Risks involving financial reporting, internal controls, compliance, and information security all require a tactical and multifaceted approach to their management, and increasingly the audit committee is being asked to help find solutions to problems in all these areas. Audit is also being asked to ensure that the company establishes and maintains a strategic and dynamic plan of action to deal with risk.

Traditionally, the role of the audit committee has been to oversee, monitor, and advise company management and ...

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