Shade letter in the Audit Committee Charter in a few clicks

Aug 6th, 2022
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How to shade letter in the Audit Committee Charter

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[Music] I want to welcome everyone to the Chus webinar in partnership with nacd Im Vanessa titlebaum Im very very pleased to be joined today um by three speakers who will introduce themselves in a moment um before we get started we are providing uh one CPE credit and so Im sure youre familiar with the drill theyll be polling questions youll need to respond in order to get that CPE credit um our program is 60 minutes today and were going to focus on audit committee Effectiveness specifically priorities and composition um so to get us started Id like to welcome Theo bunting Theo can you uh give a brief intro of our audience today sure Vanessa uh good afternoon everyone and uh glad to Ill be with you today I just Vanessa said on a Theodore Theo bunny I spent pretty much my entire professional career with energy corporation retired in 2017. um So currently serve on the board of three public uh publicly traded companies uh you know group uh Hanover Insurance and my source which uh

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In India, all public companies having a paid-up capital of Rs 10 crore or more or a turnover of Rs 100 crore or more should have an audit committee. Also, all public companies having outstanding loans or borrowings in excess of Rs 50 crore should constitute an audit committee.
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.
While the SEC does not require companies to adopt an audit committee charter, the SEC does require companies to disclose in their proxy statements whether the audit committee is governed by a charter, and if so, include a copy of the charter as an appendix to the proxy statement at least once every three years.
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 charter is a formal document approved by the governing body and/or audit committee (governing body) and agreed to by management. It must define, at minimum: Internal audits purpose within the organization. Internal audits authority.
What should the audit committees composition look like? Must have at least three members. All must be: Independent. Financially literate. At least one member must have accounting or financial expertise or sophistication (audit committee financial expert)
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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