Monday, February 16, 2009

'Monitor the tone from leadership and throughout the organisation'

Tasks ahead for audit committees

Foremost in the list of ‘ten to-dos for audit committees in 2009’ that Mr Sammy Medora, Chairman of KPMG’s Audit Committee Institute, draws up is this imperative: “Closely monitor the impact of the economic crisis on the company; focus on financial forecasts and early-warning indicators.” Understand the crisis’ impact on the company’s earnings, cash flow, liquidity and compliance with debt covenants, and monitor key indicators of trouble, he explains, during the course of a recent email interaction with Business Line.


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