30 November 2022 — Publication

Audit committees’ role in fighting fraud – Recommendations

Audit committees’ role in fighting fraud – Recommendations

Fraud can deteriorate investors’ trust, weaken the public’s confidence in markets and have long lasting damaging effects on society. A strong internal corporate governance structure is instrumental in preventing and detecting fraud.

Mitigating fraud risks requires the full collaboration of the whole corporate governance ecosystem. This publication examines how audit committees, with other key corporate governance and reporting actors such as the board, management, auditors and policymakers can help tackle corporate reporting fraud.

We propose several recommendations for an audit committee’s future-oriented and evolving role. This paper aims to inform policymakers in the context of the European Commission’s ongoing initiative on corporate reporting.