Week 6 - Responsibilities of the Audit Committee

Question 1

Who are the audit committee?

Answer 1

Sub-committee of board of directors made up of non-executive directors

Question 2

What will the audit committee have?

Answer 2

Written terms of reference (UK Corporate Governance Code)

Question 3

What is the first responsibility of the audit committee?

Answer 3

Reviewing integrity of financial statements and formal announcements on performance

Question 4

What is the second responsibility of the audit committee?

Answer 4

Reviewing internal financial controls and risk management systems

Question 5

What is the third responsibility of the audit committee?

Answer 5

Monitoring and reviewing effectiveness of internal audit function

Question 6

What is the fourth responsibility of the audit committee?

Answer 6

Giving recommendations to board on the external auditors

Question 7

What is the fifth responsibility of the audit committee?

Answer 7

Monitoring external auditor independence - any relationships developing

Question 8

What is the sixth responsibility of the audit committee?

Answer 8

Implementing policies on non-audit services by external auditor