Cost reduction risks 'should be tackled this year'

15/01/2010 Cost reduction risks 'should be tackled this year'

Understanding the risks associated with cost reduction is one issue those in risk jobs should look to tackle during 2010.

This is according to Big Four firm KPMG, which has outlined ten things audit committees need to consider when carrying out their agendas for this year.

It said that many firms have been hoping to reduce their expenditure as a result of the economic crisis, adding that "every board and audit committee" should be looking at whether the changes that have been made are permanent and whether the company cut its costs too much.

"Audit committee members know they have a sizeable task in 2010," remarked director of KPMG's Audit Committee Institute Timothy Copnell.

Other issues that people in audit jobs need to consider include ensuring internal audits are property focused, reducing the likelihood of risk of misalignment during periods of change and taking a "fresh look" at composition and leadership.

KPMG conducted research last year showing that the majority (84 per cent) of finance businesses do not carry out regular IT audits.

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