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The Audit Committee Purpose, Process & Professionalism
KELLY TOMBLIN PRESIDENT & CEO JAMAICA PUBLIC SERVICE COMPANY LIMITED
Presented to the GOJ Audit Commission Conference October 29, 2015
The Audit Committee Purpose, Process & Professionalism KELLY - - PowerPoint PPT Presentation
The Audit Committee Purpose, Process & Professionalism KELLY - - PowerPoint PPT Presentation
The Audit Committee Purpose, Process & Professionalism KELLY TOMBLIN PRESIDENT & CEO JAMAICA PUBLIC SERVICE COMPANY LIMITED Presented to the GOJ Audit Commission Conference October 29, 2015 Walking the tight rope of corporate
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All Committees Always Start with the Vision/Mission
Vision Mission
Accountability, Service, Passion, Integrity, Respect, Excellence
CORE VALUES
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Sustainability
JPS focused on being best in class Best in class requires new thinking JPS determined to become more disciplined Working hard on execution Creating and innovating historically have included a lot of broken rules Highest risk a company manages is lack of employee engagement
Know the Tensions
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The Audit Committee –
Facing Emerging Challenges
- Expanded role – providing more than traditional financial oversight
(e.g. Cyber Security)
- Companies are auditing new and different areas of the business
- More demand for Audit Committee creation from regulatory bodies
- Changing risk profiles of organisations – increased demand for risk
- versight (e.g. ERM implementation)
- More active Board Oversight – challenge management decisions
when appropriate
- Can be a Catalyst for positive change – actively and passionately
promoting business effectiveness vs simply providing a report card
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Traditional Audit Committee Purpose
To provide effective oversight and governance of key areas:
- Risk Management
- Financial Reporting
- Ethics and Compliance Matters
- Internal and External Audit
- Management and Internal Controls
BUT….Effective governance at its core is about: ‘DOING THE RIGHT THING’ Audit Committees should understand their roles and further the strategic imperative of the organization.
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The Audit Committee -Spirit
- Know your role, but ‘push the envelope’
- Be Proactive – Pay attention
- Understand your Leadership Call to Action
- Be Informed – promote open communication/reporting
- Be Enquiring (ask the why questions) – through interaction
and engagement with stakeholders (management, internal & external auditors, risk & compliance officers)
- Become Catalysts – champions of change
- Be Accountable – apply the ‘Noses in; Fingers out!’
principle
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The Audit Committee – Before you Begin
Focus on asking the right questions of:
- The Key Stakeholders
- Members of the Committee
Key questions to consider:
- What is the Board Mandate?
- Do you have the right expertise to provide
the required oversight to your
- rganisation?
- Are you adequately providing this
- versight?
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Audit Committees – Professionalism
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Individual Audit Committee members should demonstrate:
- Integrity
- Independence
- Objectivity
- Competence
- Fearlessness
And collectively, Audit Committees should:
- Keep up with changing business
environments
- Apply best practices
- Avoid conflicts of interest
- Pay strict attention to Board
matters
- Draw on appropriate expertise,
including your own
- Assess your effectiveness
The Audit Commission should focus on the ‘who’ then the ‘what’
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The Richer Conversation
- Are you leading your corporation to fundamentally
“be different?
- Are you aligned with your leadership and the
Board on what the organization‘s risks are?
- Are you up to date on the industry you are
auditing?
- Do you work on the leadership skills needed for
auditing?
- Do you build trust before you begin?
Beating people over the head isn’t leadership, it’s assault.
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A Story of Internal Audit
A Common Feeling:
“James McLaughlin pitched cutting a position in the internal auditor’s office, saying his staff could not keep up with the drumbeat of reports each identifying some new problem to fix. “When you pick up a rock, there are 1,000 snakes and every snake has babies,” McLaughlin has said of district operations. “ Prof Elam observation - The job of an internal auditor is to identify the highest risk an entity faces, propose solutions, and then hopefully the risk is reduced.