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How to create a Terms of Reference for Audit Committee
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A document that helps a company improve its corporate governance by establishing an audit committee.
What are the main responsibilities of the audit committee?
The audit committee has the following responsibilities:
- Looking over the financial reporting and disclosure process.
- Monitoring accounting policies and principles along with the internal control process.
- Keeping a note of external auditors. Specifically overseeing their hiring, performance, and independence.
- Overseeing how the internal audit function performs.
- Overviewing regulatory compliances and ethics.
- Overseeing the performance of the function.
- Bringing risk management policies and practices to light for discussion with the management.
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