The audit committee is responsible for oversight of the company’s relations with its external auditors. The audit committee should:
Have the primary responsibility for making a recommendation to the board on the appointment, re-appointment or removal of the external auditors
Approve (though not necessarily negotiate) the terms of engagement of the external auditors and the remuneration for their audit services
The audit committee is responsible for oversight of the company’s relations with its external auditors. The audit committee should:
– Have the primary responsibility for making a recommendation to the board on the appointment, re-appointment or removal of the external auditors.
– ‘Oversee’ the selection process when new auditors are being considered.
– Approve (though not necessarily negotiate) the terms of engagement of the external auditors and the remuneration for their audit services.
– Have annual procedures for ensuring the independence and objectivity of the external auditors.
– Review the scope of the audit with the auditor, and satisfy itself that this is sufficient.
– Make sure that appropriate plans are in place for the audit at the start of each annual audit.
– Carry out a post-completion audit review.
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