Audit Committee Handbook
44 Pages
English

Audit Committee Handbook

-

Downloading requires you to have access to the YouScribe library
Learn all about the services we offer

Description

.BSDI"VEJU$PNNJUUFF)BOECPPL$PNNJUUFF)BOECPPL"VEJU.BSDI VL)PVTF$SPXO).5DPQZSJHIU6OJUJU1VCMJTIFEPOXJUISFBTVSZUIF-QFSNJTTJPO&NBJMPGIBWF).5/3SFBTVSZPOEPDVNFOUCFIBMGXFCTJUFPGFORVJSJFTUIFDPOUBDU$POUSPMMFS)PSTFPG5)FS.BKFTUZVLTXJUI4UBUJPOFSZ4U0GGJDF$PMFHBUF5IF'UFYUJOPGGJDFYHTJHPWUIJTDPOUBDUTEPDVNFOUCFFYDMVEJOH5UIFINUSFBTVSZ3PSPZBM).$PBUJUTPGBOE"SNTSFBTVSZBOE3EFQBSUNFOUBM48"MPHPTNBZ'CFSFQSPEVDFEQVCMJDFORVJSJFT!INUSFBTVSZGSFF*4#/PGQMFBTFDIBSHF8IFOJO%JWJTJPOBOZ$MFNFOUTGPSNBUÏPS/PSXJDINFEJVN#2QSPWJEJOHBYUIBUJU&NBJMJTINTPMJDFOTJOH!DBCJOFUSFQSPEVDFEVLBDDVSBUFMZSFBTVSZBOE5IJTOPUDBOVTFEGPVOEJOUIFBSFBTVSZNJTMFBEJOHBUDPOUFYUHPW5IF'NBUFSJBMHFOFSBMNVTUBCPVUCF5BDLOPXMFEHFEBOEBTXPSL$SPXO$PSSFTQPOEFODFDPQZSJHIU&ORVJSZBOE).5UIFUJUMF(VBSETPGPBEUIFPOEPOEPDVNFOU)2TQFDJGJFEFM"OZFORVJSJFTSFMBUJOHBYUPUIFDPQZSJHIUJOHPWUIJTEPDVNFOUBHBJOTIPVMESFDZDMFCFJUTFOUGJOJTIFEUPZPV).4016-JDFOTJOHSJOUFE PO 1 BU MFBTU SFDZDMFE QBQFS CONTENTS Page 3Foreword Chapter 1 Introduction 5Chapter 2 Good practice principles for audit committees ...

Subjects

Informations

Published by
Reads 36
Language English

.BSDI
"VEJU

$PNNJUUFF
)BOECPPL$PNNJUUFF
)BOECPPL
"VEJU
.BSDI VL
)PVTF

$SPXO
).5
DPQZSJHIU
6OJU

JU
1

VCMJTIFE
PO
XJUI
SFBTVSZ
UIF
-
QFSNJTTJPO
&NBJM
PG
IBWF
).5
/3
SFBTVSZ

PO
EPDVNFOU
CFIBMG
XFCTJUF
PG
FORVJSJFT
UIF
DPOUBDU
$POUSPMMFS
)PSTF
PG
5
)FS

.BKFTUZ
VL
T
XJUI
4UBUJPOFSZ
4U
0GGJDF
$PMFHBUF
5IF
'
UFYU

JO
PGGJDFYHTJHPW
UIJT
DPOUBDUT
EPDVNFOU
CF
FYDMVEJOH
5
UIF
INUSFBTVSZ
3
PS
PZBM
).
$PBU
JUT
PG
BOE
"SNT
SFBTVSZ
BOE
3
EFQBSUNFOUBM
48"
MPHPT


NBZ
'
CF

SFQSPEVDFE
QVCMJDFORVJSJFT!INUSFBTVSZ
GSFF
*4#/
PG
QMFBTF
DIBSHF
8IFO
JO
%JWJTJPO
BOZ
$MFNFOUT
GPSNBU
Ï
PS
/PSXJDI
NFEJVN
#2
QSPWJEJOH
BY
UIBU

JU
&NBJM
JT
INTPMJDFOTJOH!DBCJOFU
SFQSPEVDFE
VL
BDDVSBUFMZ
SFBTVSZ
BOE
5IJT
OPU
DBO
VTFE
GPVOE
JO
UIF
B
SFBTVSZ
NJTMFBEJOH
BU
DPOUFYU
HPW
5IF
'
NBUFSJBM
HFOFSBM
NVTU
BCPVU
CF
5
BDLOPXMFEHFE
BOE
BT
XPSL
$SPXO
$PSSFTQPOEFODF
DPQZSJHIU
&ORVJSZ
BOE
).5
UIF

UJUMF
(VBSET
PG
PBE
UIF
POEPO
EPDVNFOU
)2
TQFDJGJFE
FM
"OZ

FORVJSJFT

SFMBUJOH
BY
UP

UIF

DPQZSJHIU

JO
HPW
UIJT

EPDVNFOU
BHBJO
TIPVME
SFDZDMF
CF
JU
TFOU
GJOJTIFE
UP
ZPV
).40
16
-JDFOTJOH

SJOUFE PO 1 BU MFBTU SFDZDMFE QBQFS




CONTENTS



Page
3Foreword
Chapter 1 Introduction 5
Chapter 2 Good practice principles for audit committees 7
Chapter 3 The role of the audit committee 9
Chapter 4 Membership, independence, objectivity and 11
understanding
Chapter 5 Skills 13
Chapter 6 Scope of work 15
Chapter 7 Communication 17
Annex A The role of the chair: good practice 19
Annex B Committee support: goo21
23Annex C Model letter of appointment of an audit
committee member
Annex D Model terms of reference for an audit committee 25
Annex E Example core work programme for an audit 29
committee meeting four times a year
Annex F Key questions for an audit committee to ask 31
Annex G Audit committee competency framework 35
Audit Committee Handbook - March 2007 1
O
!CCOUNTING
HANDBOOK

OOD

WITH



!UDIT

TION

P

FIVE

C
(-
IN
IN
4HIS

PROVIDES

A
&
THE
CE
GOVERNMENT
N
FITNESS
GOVERNA
PRINCIP
ND
S
HE
IN
T
4HE
PPORT
GOVERNMENT
U
#ORPORATE
S
E
LL
OF
WI
(AN
WHICH
TED
PRACTICE
C
GOOD
MEMBERSHIP
ACHIEVABLE
CONSTITU
BUT
OF
CHALLENGING
F
PROMOTES
URPOSE
THAT
FOR
AN
AND
HELP
LES
THE
FUNDAMENTAL
WITH
OUT
VELOPED
SET
DE
THIS
BEEN
E
HAS
GUIDAN
(ANDBOOK
v
THE
v
OF
CENTRAL
CONTENT
GOVERNANCE
ONGOING
v
INITIAT
GUIDANCEWHICH
I
TIC
VE
EDITION
TO
THE
4HE
#OMMITTEE
ANY
DBOOK
OF
UPDA
IVITY
G
ACT
PRA
D
4REASURY
N
/2%7/2$
DEVELOPED SIGNIFICANTLY I N T RECEN S YEAR 4HERE HAS ALSO BEEN NA
NCREASED
SUPPORTS !UDIT #OMMITTEES AND IN TURN THEIR "OARDS I N HIEV C A ING THE
C IPLES PRIN D AN ISIONS PROV OF h
ACTICE D0RDEOF'OO #O TSDEPARTMEN
E FOR !UDIT
E RNMENTAND#OMMITTEESINCENTRALGOV
EXPLANATORY GOOD PRACTICE NOTES )T SHOULD HELP H WIT REVIEW FO
DIT#OMMITTEE LAR!U PARTICU
D RT SUPPO OF A
O HAVE HELPEDWITH
-ARY+EEGAN
(EADOF'OVER MENT&INANCEN 0ROFESSION
!UDIT#OMMITTEE(ANDBOOK-ARCH
GOVERNMENT
A CONTROL INT RNAL E MAN A GEM ENT