The annual general meetings have been held for the fiscal year 2021 and we are preparing to publish the information for the half-year 2022. How do we ensure the quality of the financial information flow?
The Audit Committee is the guarantor of the accuracy and quality of the financial information provided by the company. The regulator and the financial community regularly remind Audit Committee Chairs of this important responsibility, particularly when the markets are shaken by the revelation of a financial misstatement or a fraud.
The Audit Committee is charged by the Board of Directors with a very broad mission. We assessed the scope of this mission last May with a review of the audit committee’s good practices. It should also be remembered that, in order to carry out its mission, the Audit Committee regularly consults the Finance Department, the Statutory Auditors and the Internal Audit and Risk Management Department.
- The half-yearly and annual press releases on the company’s financial statements and results;
- The company’s website, which is probably more consulted than the annual report, highlighting the company’s essential information;
- Presentations made by the Financial Department to investors and financial analysts during regular meetings and roadshows.
In some cases, the Board of Directors entrusts the Audit Committee with additional tasks, such as the analysis of forecast information, the examination of acquisition projects, or the review of a financial policy. These interventions make the Audit Committee even more relevant for the control of the flow of published financial information.
Today, the Financial Market Authorities, the Statutory Auditors and the Audit Committees are considered to be the three key players in ensuring the accuracy and the quality of the financial information published by the company.
