An annual self-evaluation is an important best practice for every audit committee. Like all self-evaluations, it enables the audit committee to understand its strengths and determine areas for improvement. A recent AICPA Audit Committee Brief provided an excellent primer for what components to include in constructing your self-evaluation and some important questions to ask. A sampling of the questions you should be asking include:

• Does the audit committee have a positive working relationship with management, internal auditors and independent auditors?

• Does the committee provide to the chair its own view on issues?

• Are differences of opinion resolved to the committee’s satisfaction?

• Do all members provide appropriate input to the committee chair?

• Is an audit committee charter used to guide the committee’s efforts and agenda?

• Does the committee engage outside experts, as appropriate?

If you feel you need help in crafting your annual self-evaluation or addressing some of the areas for improvement it raises, please contact REDW's audit and consulting team.