View the Guidelines
The Global Auditor Investor Dialogue recognises the need to restore confidence in the current economic climate and sees enhanced disclosures relating to accounting, audit and risk controls as having a pivotal role in achieving this. Accordingly, certain Dialogue members agreed to convene an independent working group to develop guidelines, which would focus primarily on disclosure and be capable of general application on a global basis, to assist not only boards and audit committees in fulfilling their responsibilities, but also investors and shareowners in their evaluation of annual reports and constructive engagement with companies on audit, risk and control matters. Members’ intent is that the guidelines should compliment and support the contributions in this area by regulators and others. It is important to emphasise that they are guidelines not standards, and should be used as such, with flexibility and professional discretion.
The guidelines are intended to provide a practical tool, which should be tailored to circumstances of each company – for example, whether a company has a one-tier or two-tier board structures. Although the guidelines focus on companies with a one-tier board structure, it is recognised that in a two-tier structure many of the guideline provisions fall within the remit of the management board. Therefore, it is intended that the supervisory board would exercise appropriate oversight to monitor compliance.
Whilst early consideration and implementation of the guidelines is encouraged, the Working Group is very mindful of the increasing burden of responsibilities on boards, in general, and audit committees, in particular. That said, it is hoped that companies, directors, investors and shareowners will find the guidelines to be helpful and useful in respect of annual reports published in 2009 and beyond.
The Working Group is indebted to those who gave of their time to contribute their views during the development of the guidelines – their views helped to highlight deficiencies, temper the tone and otherwise bring valuable insights to bear.
Last but not least, the Working Group values greatly the endorsement of the organisations listed in Appendix I. Their support is invaluable and was never taken for granted and never will be. If others wish to give their endorsement, they would be very welcome .
