I came across a note in storage recently that made me realise that it is 25 years since I first - very nervously - appeared before an Audit Committee. In the time since (and hasn’t that gone fast!), my estimation is that I have attended about 150 Audit Committee meetings.
So what have I learnt? Here are 25 things…
1 - You never stop learning when dealing with Audit Committees. The day you do, retire.
2 - Working closely and collaboratively with a good Audit Committee Chair is worth more than a payrise (and both are good too!).
3 - If you are not slightly nervous before an Audit Committee then you are doing something wrong.
4 - If the Audit Committee is a ‘gotcha forum’ then that tells you an enormous amount about the culture of the organisation.
5 - Never rely on electronic workpapers alone. They can freeze right when you need them and having your information in folders gives you precious additional moments to think when you are turning the pages.
6 - A Committee secretariat that takes detailed notes is your best friend.
7 - Never lie to an Audit Committee. I never have (and never will) but I have seen others do so and it is more obvious than the nose on their faces.
8 - There is no perfect Audit Committee paper. You can - and should - always get better.
9 - If you have to wait until a private in camera session to tell the Audit Committee something supposedly urgent it is probably not worth sharing.
10 - Understand the lay out of the Board room before you go in. I always try and go in a couple of hours early to see how it is set up.
11 - Start planning for the next Audit Committee before this one has even started.
12 - Have a game suit that you are comfortable in so you are not sitting there worrying about how you look.
13 - If they offer jam scones and you are wearing a white shirt opt for the water!
14 - Take two pens into the room. One will run out for sure.
15 - Every Audit Committee Chair has a particular look when they want you to do something but they don’t want to say it in front of everyone.
16 - An Audit Committee without a good Charter is a ship without a rudder.
17 - Keep track of what you have committed to an Audit Committee. They will remember so be ahead of that question.
18 - If the Audit Committee treats you as an ‘enemy’ dial your nearest recruiter because time is up.
19 - An Audit Committee should not expect you to know everything.
20 - Other than the Chair have someone that can give you feedback on your performance (mine is the external auditor).
21 - Trust your gut.
22 - A morning Audit Committee is always better than one after lunch.
23 - Be (very) alert to the manager that treats the Audit Committee differently to how they treat those that work for them.
24 - There is no such thing as a well-functioning organisation with a poorly functioning Audit Committee.
And
25 - Well ... that is still to be written ...
Tom McLeod is a Global Chief Risk and Chief Audit Officer with over 30 years’ experience. He is a columnist and also chairs a major charity.