The Board Institute, a corporate governance advocacy group, unveiled The Audit Committee Index, an Web based evaluation tool to allow a company to effectively judge the strengths of its audit committee and highlight areas for improvement.
The content of The Audit Committee Index was developed in cooperation with the Financial Executives Research Foundation, Inc. (FERF), the research affiliate of Financial Executives International (FEI), the professional association for 15,000 senior-level corporate financial executives, according to a news release.
Completed anonymously by directors, and, at their discretion, those who work closely with the audit committee, the Index provides scores, variances, ranges of responses, best practices and individual comments to help enhance the committee. The survey takes 10 to 15 minutes to complete. The Index allows the audit committee to benchmark the audit committee internally, against best practices, and, as data is compiled, externally against other companies.
“Audit Committees, in particular, face unparalleled challenges in the new regulatory landscape. The Audit Committee Index is a tool to consider in meeting these new requirements,” Colleen Sayther, President and CEO of FEI and FERF, said in the announcement.
The Audit Committee Index:
- captures critical success factors defining good governance
- encompasses quantitative and qualitative metrics
- drives compliance
- enhances credibility
- educates on best practices
- highlights strengths and areas for improvement
- moderates risk Individual results are anonymous and confidential and released only at the discretion of the board.
Results are compiled in a classified form for external constituencies and sector and peer benchmarking. For more information go to www.Theboardinstitute.com .