Committee Members Predict Use of Alternative Financing Instruments
During Credit Crunch
Findings Will Preview At Sixth Annual PricewaterhouseCoopers Audit
Committee Forum
NEW YORK, Oct. 4, 2007 (PRIME NEWSWIRE) -- Audit committee chairs have twin priorities for 2008: assessing and managing enterprise risk; and complying with a new crop of regulations and reporting changes, according to a poll of invitees to PricewaterhouseCoopers' sixth annual Audit Committee Forum, which convenes today. Coming in third: a focus on confirming or establishing strong internal controls and oversights.
Audit committee members responding to the poll were confident about their companies' financing options during the current credit crunch. Many predicted that a variety of alternative financial instruments will come into use amid a generally more conservative fiscal approach.
"Our plans assume that credit will be tight for quite a long time (about two to three years)," offered one respondent. "Our company is well-rated," offered another. "We may refinance existing debt. The issue will be cost, not availability."
Respondents represented a range of financial services sectors, including banking and capital markets, insurance, investment management and real estate.
A Forum for its Time
The annual Audit Committee Forum, an invitation-only two-day conference hosted by PricewaterhouseCoopers' Financial Services practice, is in its sixth year. Attendance this year is expected to top 400, comprising audit committee chairs and members as well as CEOs and corporate finance executives.
Headline sessions include keynoter John J. Brennan, Chairman and CEO of The Vanguard Group, and general-session panels with distinguished moderators discussing "Emerging Practices for Audit Committees," "M&A and private equity transactions: How does it affect your audit committee?" (Hosted by CNBC's David Faber), a "Risk and Compliance Update," and "Lessons Learned." Panelists include representatives from Apollo Management, Citigroup, Goldman Sachs, JPMorgan Chase, MetLife, Prudential, State Farm Insurance, UBS, Unum Group, and Wachovia.
"At this time of heightened requirements of both corporations and their boards, it's imperative that the lessons being learned by audit committee members be examined and shared," said Jim Flanagan, leader of PricewaterhouseCoopers' U.S. financial services industry practice. "In addition to oversight of financial reporting, audit committees now also oversee special investigations, executive compensation, and progress on long-term investor focus. The Audit Committee Forum encourages constructive and beneficial dialogue among these important Board members to increase intelligence and best practices."
Earlier this week, PricewaterhouseCoopers LLC and Corporate Board Magazine confirmed the growing significance of audit committees in a separate survey of overall board member, directors rated serving on the audit committee as their most difficult responsibility.
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