Page 177 - SBL Integrated Workbook STUDENT 2018

Audit and compliance

Audit committee

3.1 The audit committee

The audit committee is a committee of the board of directors consisting
entirely of independent non-executive directors (NEDs) (at least three in
larger companies), of whom at least one has had recent and relevant
financial experience.

The audit committees’ key function is to provide evidence of increased accountability
to shareholders.

It is critical that the audit committee be independent, comprised of non-
executive directors and has written terms of reference.

3.2 Roles of the audit committee

 The key roles of the audit committee are ‘oversight’, ‘assessment’ and ‘review’ of
other functions and systems in the company.

Review of
internal control Oversee work of
internal audit
systems

Roles of the audit
committee

Monitor integrity Review work of
of financial external audit
statements

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