Audit committee

Question 1

Audit Committee Responsibilities

Answer 1

• provide oversight of the audit and to ensure audit quality
• create an environment that accommodates an open discussion between mgmt and auditors.
• Oversight of the financial reporting process
• Review of disclosure statements
• Oversight of risk mgmt and internal financial controls
• Oversight of regulatory compliance

Question 2

Audit Committee requirements

Answer 2

• Experience - Audit committee members should have a financial background
• Independence - Should be independent from both management and the auditors.
• Time commitment - Should have an appropriate amount of time to dedicate to the commitment.