Evolving Regulations, Evolving Audit Committee Responsibilities

Litigation attorneys John Grugan and Matthew Catron co-authored an article for Agenda about evolving regulations on and expanding responsibilities for audit committees. Heightened scrutiny from the U.S. Department of Justice (DOJ) and U.S. Securities and Exchange Commission (SEC), coupled with new quality control standards from the Public Company Accounting Oversight Board (PCAOB), mean audit committees face more pressure in diligently and compliantly carrying out financial reporting and accounting obligations. The attorneys additionally highlight recent rulemaking and enforcement, risks from emerging technologies such as artificial intelligence and other questions about cybersecurity that committees must now confront. Amid these shifts, the authors advise audit committees to review existing procedures and reporting systems, identify vulnerabilities and consult subject matter experts as needed to keep pace with technology-related risks and help ensure effective execution.

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