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Accounting & Auditing Assignment

   

Added on  2020-12-09

8 Pages2271 Words478 Views
Audit (ACCOUNTING)

Table of ContentsINTRODUCTION...........................................................................................................................31. Functions and benefits and membership of Audit committee................................................32 Regulation and oversight to ensure high quality of the Audit firms.......................................53. Role of Audit committee assuring the work carried out by Audit firm is effective...............6CONCLUSION ...............................................................................................................................7REFERENCES................................................................................................................................8

INTRODUCTIONAudit can be detailed inspection and analysis into the accounts and operational activitiesof an organization. Under the audit investigation of books of accounts, financial statement,statutory records and documents is carried out by an external team or firm which is referred asthe auditor. In the present report Bob, the non executive director of the Juvenal Plc is providedwith significant information about the roles and importance of audit committee for hisorganisation. Along with this, regulations are defined which audit firms must comply with whencarrying on audit of an organization. Audit committee is advised on what role they can play forensuring the effectiveness in the work of auditors. 1. Functions and benefits and membership of Audit committeeMembership and composition of the audit committee:The audit committee in big firms need be formed by the board with at least threemembers in it. In case of smaller business two members are sufficient who can be independentnon executive directors. In smaller companies the company chairman may be a member of, butnot chair, the committee in addition to the independent non-executive directors provided he orshe was considered independent on appointment as chairman. The main requisite while formingan audit committee is that, at least one of the member of committee must have relevancefinancial expertise. The audit committee as a whole shall have competence relevant to the sectorin which the company operate. Role of Audit committee: The main roles and responsibilities of the Audit committee involves:To monitor the integrity of the financial statements as well as any announcement relatedwith business and its performance.To review the Internal control and risk management system of the business.To make recommendation to board regrading the external auditors, this included thereappointment, re-appointment ans removal (Audit Committees, 2018).Reviewing and monitoring the internal audit function and its effectiveness.To carry on the assessment related with independence and objectivity of the auditors.To develop and implement the service and policies related with non audit matters. To review the internal financial controls.The audit committee also provide recommendations and advise on matter related withannual report and account, when it has been requested by the board (Role and

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