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Each year, in addition to the opinion on the annual financial statements, the Chair of the Audit Committee receives a management letter on internal control from the statutory auditors. What should the Chair of the Audit Committee do with this letter?

The preparation of financial statements has become a routine process. This is not the case for non-financial matters. Companies that are lagging behind in ESG must be prepared to answer sometimes embarrassing questions. This will be particularly the case in Europe with the gradual implementation of the directives on Corporate Social Responsibility and Taxonomy.

The Board of Directors is responsible for closing the annual accounts. It entrusts the Audit Committee with the bulk of the work prior to this task. The Audit Committee does not carry out this work on its own but relies heavily on the services of the Statutory Auditors, who are the Audit Committee’s key contacts.

This process is initiated by the Chairman of the Committee in consultation with the Chairman of the Board of Directors. The results of this exercise will make it possible to identify areas for improvement in the committee’s operations.