Friday, 15 November 2013

Major Roles and Responsibilities of Audit Committee

Many literatures have highlighted the actual roles and responsibilities associated with audit committee. Lin et al. (2008) for example, notes that audit committee oversight roles and responsibilities is made for improving internal control, regulations compliance, sound corporate economic reporting and auditing functions.

Chen et al. (2008) notes that as you move the primary responsibilities of the actual audit committees are to help you the board with their duties in overseeing the actual corporation’s reporting and examine requirements, it also:
monitors the integrity of the company’s financial statements in addition to reporting system;
ensures that this company complies with appropriate and regulatory requirements;
monitors separate auditors’ qualifications and freedom;
monitors the performance of the company’s internal and external auditors; and
monitors submission with corporate legality in addition to ethical standards, including the actual maintenance of preventive scams controls.
Chambers (2005) discussed four responsibilities of examine committees, which are:
advising board about the reliability of financial info;
advising board in chance management and internal command;
dealing with external auditors; in addition to
overseeing the internal examine process.
Among many areas of audit committee roles in addition to responsibilities, next we might find five main areas in which audit committees perform distinct roles:

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