Strategies for Enhancing Corporate Governance - Table 2 Description
September 3, 2004
Audit Report No. 04-032
Table 2: Main Areas of Audit Committee Responsibility
Financial reporting
- Appropriateness of accounting policies
- Disclosure requirements
- Fairness and balance of Management Discussion and Analysis (MD&A)/operating review
- Generally Accepted Accounting Principles
Risk management & internal control
- Understanding key risk areas
- Effectiveness of controls
- Fraud risk
External audit
- Appointment and remuneration
- Scope of work
- Independence requirements
- Significant audit findings/recommendations
- Reviewing the performance of external auditors
Internal audit
- Charter, authority and resources
- Scope of work
- Internal audit effectiveness
- Responses to internal audit recommendations
Maintaining & measuring effectiveness
- Training needs
- Maintaining financial literacy
- Annual performance evaluation of audit committee
Communicating & reporting
- Relations with management
- Updates & recommendations to the full board
- Reports to board and shareholders
Regulatory, compliance & ethical matters
- Effectiveness of system for ensuring compliance with laws and regulations
- Code of conduct/ethics
- Whistleblowing
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