President's address at Audit Committee Forum

Craig Farrow FCA
President, Institute of Chartered Accountants in Australia

13 February, 2012
Art Gallery of NSW

Ladies and gentlemen, welcome to our thought leadership forum.

It is often said that the audit committee is like a good insurance policy – it’s better to have it and not need it than to need it and not have it.

Being on an audit committee is a part-time job with full-time responsibilities. It’s no wonder when you consider the broad and critical role that the audit committee plays.

You are here tonight as participants in our discussion on audit committees.

Your inspection of ideas and your insights will help define, clarify and position the future role of the audit committee in our business and financial governance system.

Why do we care?

Because audit quality is an effective lever for driving investor confidence and business sustainability. It’s also an effective lever for upholding financial integrity in society – the raison d'être of the Institute.

No doubt this resonates with each of you.

So this is a lockup – albeit in a majestic institution.

We respect your intellect and your opinions, therefore this conversation will follow Chatham House rules.

You’ve all been sent the thought leadership paper developed by the Institute, our Scottish counterparts, and the UK regulator. 

The paper, Walk the line: Discussions and insights with leading audit committee members, gives us a current benchmark of where audit committees are at in terms of skills, roles and accountability.

We now have a transnational perspective on the regulation of audit and its relevance to corporate governance.

The paper is also what we call in Australia, a football, to kick around as a conversation starter.

We’re fortunate to have Stephen Hadrill with us for our second thought leadership forum – Stephen also contributed to our financial early warning systems conversation this time last year.

Stephen, we will shamelessly tap into your tremendous passion and expertise.

Your work as a regulator is so important to capital markets and the future of our financial system in various jurisdictions.

On behalf of the Institute and Lee White, we want to thank you and the FRC for this unique transnational collaboration.

Our thanks also to Belinda Gibson, James Miller and Duncan Boyle for being our panellists.
I’m truly looking forward to a lively conversation.

I’ll now hand over to Lee. 
 

Article last updated 21 February 2012