Though financial reporting and Sarbanes-Oxley Section 404 oversight remain a top priority for audit committees, other areas such as IT are fast rising as high-risk concerns, according to a survey sponsored by Big Four firm KPMG. According to the 2006-2007 Public Company Audit Committee Member Survey, conducted by KPMG's Audit Committee Institute and the National Association of Corporate Directors, just 15 percent of 282 audit committee members participating the survey indicated that they were "very satisfied" with their company's oversight of IT, while 20 percent admitted that their IT risk oversight needed improvement. Some 90 percent of respondents said the audit committee should devote more agenda time to upgrading IT risk oversight. Despite ongoing challenges posed by complex accounting standards and Section 404 compliance, most audit committee respondents were confident of their oversight in that area. About 80 percent of audit committees were "very satisfied" with their oversight of management's accounting judgments and estimates and some 60 percent said they were "very satisfied" with the amount of time the audit committee spends discussing the issue. For more information on the survey, visit: www.kpmg.com/aci.
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