Adapt image in the Audit Committee Charter

Aug 6th, 2022
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How to adapt image in the Audit Committee Charter

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[Music] welcome to this edition of diligence inside americas boardrooms im tk kirsten and ill be your host for todays show as you can see were back in the folds of the new york stock exchange overlooking the trading floor and its a pleasure to be back and within our old haunts back here in studio so today were going to be talking about an interesting topic were going to be talking about rethinking the audit committee agenda and joining me is john rohde whos an audit partner and the leader of kpmgs board leadership center welcome john thanks tj great to be here and i echo your view of being here in person so great to be here isnt it great thats having to wear masks its great yeah so uh first of all john before we get started i need to sort of congratulate or salute audit committees in general and particularly audit chairs but on committees i just think that through not only pre-pandemic but through the pandemic they have done a terrific job we both know the work thats invo

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The Financial Reporting Councils Guidance on Audit Committees (the Guidance) is designed to assist company boards in making suitable arrangements for their audit committees, and to assist directors serving on audit committees in carrying out their role.
Audit committee members have a critical role in overseeing many aspects of a companys activities and performance. The audit committee has responsibility for overseeing financial reporting and related internal controls, risk, independent and internal auditors, and ethics and compliance.
The audit committee ensures that appropriate policies and processes are in place for the prevention and identification of fraud, such as asset misappropriation, corruption, and financial statement fraud. The audit committee works with management to make sure that necessary steps are taken on the detection of fraud.
(2) The Audit Committee shall consist of a minimum of three directors with independent directors forming a majority: Provided that majority of members of Audit Committee including its Chairperson shall be persons with ability to read and understand, the financial statement.
In the report, the audit committee must state whether it has: Reviewed and discussed the audited financial statements with management. Discussed with the independent auditor all matters required under applicable auditing standards. Received required independence disclosures from the independent auditor.
The Committee is appointed by the Board of Directors to (a) assist the Board in its oversight of (i) the integrity of the Companys consolidated financial statements, (ii) the Companys compliance with legal and regulatory requirements, (iii) the Companys system of internal controls, (iv) certain aspects of the
Despite the importance of the audit committees role overseeing the audit, related disclosures often are limited. While an audit committee report must be included in the proxy, regulations and stock exchange listing rules require few specific disclosures about the audit and auditor.
The Audit Committee shall assist the Board in fulfilling their oversight responsibility relating to (i) the integrity of the Companys financial statements; (ii) the financial reporting process; (iii) the systems of internal accounting and financial controls; (iv) the performance of the Companys internal audit

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