Deloitte’s Audit Committee Brief includes a summary and questions outlining Risk oversight and Tax considerations for audit committees. A link to the publication is provided for reference:
- Audit committees may have a risk committee (Will this be a continuing trend?)
- Tone at the top is imperative for effective risk oversight
- Insightful questions for consideration:
- What internal controls are in place to address significant tax risks?
- Is there a clear approach and justification for where risk issues are placed?
- Is there a widely communicated process to quickly bring risk-related issues to the Board?
- What issues should the audit (risk) committee be aware of when evaluating potential risks?
Risk governance is rapidly becoming the new norm, both by tax administrations to understand and rate risks of a taxpayer as well as an effective tax risk policy and framework for a multinational to identify and mitigate risks. This trend will require additional resources to fulfill such commitments, immediately and ongoing.