Audit Committee: Oversight of Internal Audit Best Practices, By Moody's

The audit committee of the board has been a focal point of governance reforms in recent years, with heightened attention paid to the integrity of financial reporting, internal controls and compliance and risk management processes. Moody’s Investors Service views the audit committee’s oversight of internal audit as critical to the sound running of an institution. In evaluating the quality of committee oversight of this function, Moody’s interviewed more than 400 audit committee chairmen of large U.S. and Canadian companies over the past three years, along with many internal audit professionals.

 This comment describes how Moody’s views best practices for the role of the audit committees in overseeing internal audit. Read the “Special Comment.”