- The audit committee plays a key role with respect to the integrity of the entity’s financial information, its system of governance, risk and internal controls, and the legal and ethical conduct of management and employees.
- Depending upon circumstances affecting an entity, the functions undertaken by an audit committee will generally encompass the following areas:
- Evaluating whether processes are in place to address key roles and responsibilities in relation to risk management.
- Evaluating the adequacy of the control environment to provide reasonable assurance that the systems of internal control are of a high standard and functioning as intended.
- Performing an independent review of the financial statements to ensure the integrity and transparency of the financial reporting process.
- Monitoring the effectiveness of an entity’s performance information and compliance with the performance management framework and performance reporting requirements.
- Evaluating the quality of the internal audit function, particularly in the areas of planning, monitoring and reporting.
- Engaging with external audit and assessing the adequacy of management response to issues identified by audit.
- Reviewing the effectiveness of how the entity monitors compliance with relevant legislative and regulatory requirements and promotes a culture committed to lawful and ethical behaviour.
Role of Audit Committees audit 2017-05-26T06:27:05+00:00