Corporate Governance 4

Question 1

What are the 3 principals of audit risk and internal control ?

Answer 1

M- the board should establish formal and transparent policies and procedures to ensure the independence of internal and external audit functions

N- the board should present a fair, balanced and understandable assessment of the company’s position and prospects

O - the board should establish procedures to manage Risk

Question 2

What does provision 24 say ?

Answer 2

The board should establish an audit committee of independent non excs with a minimum of 3 people (smaller 2). The chair should not be a member. And atleast one member of the audit committee has recent and relevant financial experience

Question 3

What does provision 25 say ?

Answer 3

The main role of the audit committee includes

To monitor the integrity of the financial statements.

To report to the board on how it has discharged its responsibilities

To monitor and review the effectiveness of the company’s internal audit function