ACCA 考試 Audit committee

Audit committee是F8考試的一個(gè)重點(diǎn)，本篇文章總結(jié)了audit committee的相關(guān)知識點(diǎn)。

The objectives of the audit committee

• Increasing public confidence in the credibility and objectivity of published financial information;

• Assisting directors in meeting their responsibilities in respect of financial reporting.

The function of the audit committee

• Monitoring the integrity of financial statements;

• Reviewing the company’s internal financial controls;

• Monitoring and reviewing the effectiveness of the internal audit function;

• Making recommendations in relation to the appointment and removal of the external auditor and their remuneration;

• Reviewing and monitoring the external auditor’s independence and objectivity and the effectiveness of the audit process;

• Developing and implementing policy on the engagement of the external auditor to supply non-audit services.

Advantages

In addition to meeting the objectives stated above, audit committee has the following advantages.

• It may improve the quality of management accounting, as it is well placed to criticize internal functions.

• It should lead to better communication between the directors, external auditors and management.

Disadvantages

Audit committee may lead to:

• fear that their purpose is to catch management out;

• non-executive directors being over-burdened with detail;

• a ‘two-tier’ board of directors;

• additional cost in terms, at least, of time involved.