Slide attachment in the Audit Committee Charter

Aug 6th, 2022
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How to slide attachment in the Audit Committee Charter

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[Music] all right in this lesson Im going to discuss the audit committee and the importance of the audit committee to our auditors and to a organization and company now when we talk about audit committee specifically were talking about public companies were not necessarily talking about private although private can work this way its just theres a little bit more leniency with all of this when we talk about private companies so a private company also may not have an audit committee because the Board of Directors may be put together of all the owners and so there may not be independent things independent people on the board of directors so again this has to do with public companies private companies get a little bit of leeway in all of this so audit committee what is an audit committee well first of all lets start with the Board of Directors so we have the Board of Directors here and if youve never been on a board directors I dont know how Board of Directors are put together basi

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(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.
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 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
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.
It is generally agreed that an audit committee should be comprised of three or four members made up of non-executive directors.
An audit committee must be composed of a minimum of three members and every audit committee member must be a director of the issuer. Every audit committee must have a written charter that sets out its mandate and responsibilities.
SEC requirements The SEC requires an issuer to disclose whether at least one audit committee financial expert serves on the audit committee, and if so, the name of the expert and whether the expert is independent of management.
Review the activities and organizational structure of the internal audit function, as well as qualifications of its personnel. Review the internal audit charter and recommend any necessary changes. Discuss, with the independent auditor, the internal audit functions responsibilities, budget, and staffing.

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