Corporate Governance - A Practical Guide For Audit Committees
04 August 2017
Original content provided by BDO UK
The role of the audit committee is at the forefront of corporate governance in the UK. Although many of the requirements of audit committees are focused on companies with a premium listing on the London Stock Exchange, these are increasingly influencing best practice for other listed and mid-sized companies, including private equity investees.
The 2014 Corporate Governance Code introduced various revisions resulting in the behaviours of the board and their committees, and the way they carry out their roles and functions, carrying much more weight. In other words, compliance with the spirit of the Code is as, if not more, important as having the necessary structures and procedures in place.
BDO has produced a guide which gives practical guidance to, and identifies best practice for, audit committees of mid-market, AIM and smaller listed companies. It has been developed using feedback from interviews with audit committee members and people who work with them.
This guide will assist in establishing where the audit committee’s time should be best spent and it discusses the composition of the audit committee and the skills and competencies of its members. We also cover the main responsibilities of the committee including the subjects of risk, whistleblowing, the appointment of auditors and the entire audit process.
The chair of an audit committee is a vital position and we explore the role they should play in ensuring it is as effective as possible and the key relationships they should invest time in developing.
So this is a useful read for anyone involved in, or interested in, audit committees.
Download a copy of the guide and read more about audit committee obligations.