Good Practice Guidelines for the Audit Committee 1987 Synopsis These guidelines, developed and published by the US Treadway Commission in 1987, still provide an excellent benchmark for all boards, audit committees and internal auditing. Many of the guidelines discuss issues and situations that should and have motivated innovation and cutting edge resources and practices in internal auditing.

From the Report of the National Commission on Fraudulent Financial Reporting (1987, Appendix I, pp. 179-181) [The Treadway Commission], with permission from Committee of Sponsoring Organizations, New York, USA. www.coso.org After Reading the Case Study Consider:

1. How do the above 1987 guidelines benchmark with the terms of reference for your own organization’s audit committee?

2. How are these guidelines implemented in your own audit committee’s monitoring activities?

3. Are there other practices today in your audit committee’s activities not mentioned above?

4. Has your internal auditing used these guidelines to improve the services it provides to your board and audit committee?