Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Audit Policy Revisions topic
No spam. Unsubscribe anytime.
CalSTRS audits committee approves audit and risk management policy revisions, citing auditor independence
Summary
The CalSTRS Audits and Risk Management Committee approved revisions to its audit and risk management policy that remove the ability for an independent financial statement auditor to prepare financial statements, aiming to strengthen auditor independence; the change was approved unanimously by roll-call vote.
The California State Teachers' Retirement System (CalSTRS) Audits and Risk Management Committee voted unanimously to approve revisions to its audit and risk management policy, a change staff said clarifies terminology and strengthens auditor independence.
Unidentified Presenter (staff) told the committee the policy updates align terminology with current audit standards and, notably, remove "the opportunity for the independent financial statement auditor to prepare financial statements," preserving a separation between management and independent audit functions. The presenter said Julie's team prepares financial statements and keeping that role with staff helps prevent auditors from auditing their own work.
Committee members asked whether the changes required a second reading. Chairperson Bradford and staff confirmed the committee could approve the revisions at today's meeting; the motion to approve was moved and seconded and passed by roll call: Miss Whitaker, Mr. Oppenheim, Mr. Ruffino, Mr. Patterson, and Chair Bradford voted 'Aye.' No public comments were recorded on this item.
Staff said the revisions result from a comprehensive review (the policy had not been updated in full since 2005) focused on consistency and clarity, and that the changes were grounded in current audit standards. The committee approved proceeding with the updated policy and directed staff to implement the revision as adopted.
The approval concludes the first-reading action recorded on the agenda; staff indicated the revised policy will be reflected in governance materials moving forward and will be shared with relevant business areas.
