Auditing and Control

Running head: AUDITING AND CONTROL
Auditing and Control
Name of the Student
Name of the University
Author’s Note

AUDITING AND CONTROL1
Table of Contents
Answer to Requirement (a)........................................................................................................2
Functions................................................................................................................................2
Benefits..................................................................................................................................2
Answer to Requirement (b)........................................................................................................3
Answer to Requirement (c)........................................................................................................3
Advantages.............................................................................................................................3
Disadvantage..........................................................................................................................4
References..................................................................................................................................5

AUDITING AND CONTROL2
Answer to Requirement (a)
The Board of Directors of Cavendish is needed to consider the functions as well as
benefits of an Audit Committee. These are discussed below.
Functions
The function of audit committee is distinct from that of finance or budget committee.
The primary function of audit committee is supervising the audit of the books and records of
association while reviewing the internal financial control and procedures. As a part of its
function, it is needed for an audit committee to recommend to the Board of Directors
regarding selection, retention and termination of an indepdence audit firm (Ege 2014).
Benefits
 An audit committee offers actionable understandings for overseeing as well as
improving the practices of financial reporting. The audit committee meets with the
senior management for reviewing and maintaining external financial reporting and
organizational control.
 An audit committee plays a crucial role in creating as well as maintaining efficient
programs for eliminating accounting and financial frauds. Audit committee members
play an active role through their expertise and insights in legal, management, financial
and operational matters (Garven 2015).
 The presence of an audit committee is required for improving the internal audit
function. Audit committee maintains the overall integrity of internal audit since the
internal audit team reports directly to the audit committee.
 An audit committee plays a crucial role in monitoring the activities and services of
external auditors through meetings with the external auditors (Garven 2015).