Scandalous accounting frauds during the past decade precipitated
a strengthening of the corporate governance system. In the coming
months, this new system will be put to the test again when publicly
accountable enterprises convert their accounting frameworks from
the current Canadian generally accepted accounting principles
(GAAP) to International Financial Reporting Standards (IFRS). This
article explains the audit committee's role in this
process.
The IFRS related role of the audit committee is multifaceted,
but can generally be considered in two parts:
1. During the transition, the committee must monitor the
conversion to ensure that the process is driven by management, that
responsibility rests with an appropriate individual and that
sufficient resources have been allocated.
