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      The expanding focus of audit committees

      Access to a broader range of skills is a key consideration for audit committees in their approach to succession planning including the appointment of directors from less traditional backgrounds.

      Audit committees are expanding their focus beyond traditional financial oversight to include non-financial risks like cyber threats, artificial intelligence (AI) and climate, as regulatory scrutiny and community expectations intensify.

      KPMG ‘s Board Leadership Centre surveyed more than 600 audit committee members from 17 counties to explore the key challenges facing audit committees and understand how they can build the capabilities and frameworks needed to navigate the evolving risk landscape.

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      Rewriting the Charter

      The evolving role and scope of the audit committee
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      Emerging challenges for audit committees

      Business people having a discussion in the boardroom

      Focus & agenda

      74% are spending more time with the Chief Risk Officer in light of the evolving risk and disclosure landscape

      37% are concerned about the lack of cybersecurity and technology expertise on their audit committee.

      Scope & oversight

      85% of Australian audit committee members identified regulatory compliance as the top risk facing the audit committee in addition to financial reporting and related risks.

      81% reported that cybersecurity – including ransomware and IP risk – are particularly challenging or concerning from the audit committee's oversight perspective.

      Generative AI usage

      44% of audit committees are discussing the risks associated with Generative AI usage.

      56% of audit committee members in Australia are reallocating risk oversight responsibilities among committees due to workload concerns.

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      Related resouces

      A practical guide to support directors with their governance duties and navigating changes in the external environment. Our 2022 edition includes ESG considerations.

      Board Leadership Centre

      Transforming the audit experience by harnessing advanced technology and the power of our market-leading audit specialists.
      Audit & Assurance Services

      KPMG’s boardroom insights

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