Cut note in the Audit Committee Charter

Aug 6th, 2022
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How to cut note in the Audit Committee Charter

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now we talked about the internal audit function of a company in like ways companies have to have an audit committee and the audit committee is a committee made up of members on the board of directors and for some reason it seems that three has become kind of the commonly accepted number of members to have on the Audit Committee Sox does require that there be outsiders on the audit committee that means the member of the board cannot also be an employee of the organizations so the CEO even though he or she is on the board cannot also be a member of the Audit Committee and the Audit Committee when theyre wearing their audit committee hat has a fiduciary responsibility to the shareholders and other outside interests of the organization so they end up serving as kind of a check and balance between the auditors whether they be internal or external auditors and management so they will interact with the internal auditors directly so internal audit functions report directly to the Audit Commi

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Non-compliance with the provisions of the audit committee 5 lakhs and any company officer in default shall be punished with imprisonment for up to one year and a fine between Rs. 25,000 and Rs. 1 lakh, or both.
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 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.
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.
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
The internal audit charter should be approved by the governing body and agreed to by senior management. The charter should at a minimum include internal audits purpose and mission, authority, responsibility, its independent reporting relationships, scope and requirement to conform to IIA Standards.
(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.
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.

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