ACCA 考试 Audit committee
Audit committee是F8考试的一个重点，本篇文章总结了audit committee的相关知识点。
The objectives of the audit committee
? Increasing public confidence in the credibility and objectivity of published financial information;
? Assisting directors in meeting their responsibilities in respect of financial reporting.
The function of the audit committee
? Monitoring the integrity of financial statements;
? Reviewing the company’s internal financial controls;
? Monitoring and reviewing the effectiveness of the internal audit function;
? Making recommendations in relation to the appointment and removal of the external auditor and their remuneration;
? Reviewing and monitoring the external auditor’s independence and objectivity and the effectiveness of the audit process;
? Developing and implementing policy on the engagement of the external auditor to supply non-audit services.
Advantages
In addition to meeting the objectives stated above, audit committee has the following advantages.
? It may improve the quality of management accounting, as it is well placed to criticize internal functions.
? It should lead to better communication between the directors, external auditors and management.
Disadvantages
Audit committee may lead to:
? fear that their purpose is to catch management out;
? non-executive directors being over-burdened with detail;
? a ‘two-tier’ board of directors;
? additional cost in terms, at least, of time involved.
