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• Increasing public confidence and credibility and objectivity of published financial statements.
• Assisting directors in meeting their responsibilities in respect of financial reporting.
• Strengthening the independence position of a company’s external auditor by providing an additional channel of communication.
- The Board shall establish an Audit Committee composed of independent non-executive directors to keep under review the scope and results of audit, its effectiveness and the independence and objectivity of the auditors.
- The Audit Committee shall be given written terms of reference which deal adequately with their membership, authority and duties and shall meet at least twice a year.
- The Audit Committee will:
Review the half year and annual financial statements before submission to the Board focusing particularly on:-
- Changes in accounting policies
- Significant adjustments arising from the audit
- Major judgmental areas
- Compliance with accounting standards, disclosure and legal requirements, and
- Subject the financial statements to independent critical appraisal
• Consider appointment, remuneration and the resignation or dismissal of external auditors.
• Discuss and agree on the scope, nature and priorities of audit.
• Discuss with external auditors any reservations and problems arising in the course of audit and any audit management letters and management responses prior to the issuance of the audit certificate.
• Review and discuss with the external auditors aspects relevant to internal control procedures, risk management and internal audit.
• Review major findings on internal audit and investigations and consider management response or actions thereto.
• Undertake such other duties or function as may be assigned by the Board which are relevant to audit and investigations.
Wilfykil answered the question on April 11, 2019 at 09:41
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