CHAPTER 5

Risk Management Oversight Function of the Audit Committee

Executive Summary

Organizations of all types, sizes, and complexities are facing a variety of risks that should be managed through effective risk management systems and internal controls. These risks and their effective assessment and monitoring affect the reliability of financial statements and effectiveness of internal controls. Management, external auditors, and internal auditors can provide assurance to the audit committee on the managerial process designed to manage the risks and minimize their impacts on financial reporting and auditing processes. The audit committee should oversee the company’s risk assessment and management to provide assurance on the processes designed ...

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