Independent Assurance for Boards and Audit Committees

Boards of directors are charged with protecting and representing the interests of company shareholders. Shareholders delegate their decision control rights to directors, who should be viewed as shareholders' agents, as a more efficient way to ratify and monitor management's decisions. The power of the board to oversee an enterprise is effectively absolute. Directors are typically part-time positions meaning they often need to rely on others in fulfilling their duties. They need to rely on independent sources to tell them how it is, not simply how management wants it told. Many organizations have an internal audit function that provides directors with an independent and reliable stream of information. Other organizations may engage an outside assurance resource, such as Candela Solutions. Regardless of how a board and audit committee decide to procure independent resources, they should have a current and direct pulse on:

• Assessing legal and ethical conduct as led by management
• Contingency plans in the event emergency situations arise triggering the need to replace the CEO and other senior executives
• Providing general oversight of the business through key board-level controls to mitigate risks of inappropriate executive override of established policies and procedures
• Approving major capital allocations based on unbiased information
• Advising management on significant issues facing the corporation
• Verifying adherence to the Corporate Compliance and Ethics Program
• Approving of the company's risk appetite in terms of enterprise risk management
• Directing surprise audits to strengthen the 'perception of detection,' which is one of the more desired traits of business cultures for preventing fraud. The ACFE 2010 Report to the Nations on Fraud and Abuse indicates that surprise audits are used only 28% of the time, yet reduce fraud losses by over 50%.

Consider Candela Solutions as the board's and audit committee's independent set of eyes and ears to help ensure objective results. In addition, we have a wide range of board and committee evaluation services.

Refer to related in-house training sessions:

• Audit Committee 101: From the Basics to Leading Practices
• Audit Committee and Internal Audit: Together on the Same Page
• Boardroom Essentials – What You Don't Know Can Hurt You
• Internal Auditing 101: Planning, Fieldwork and Reporting
• New Board Member Orientation: Understanding Duties, Risks & Controls