The Institute of Chartered Accountants of India ( ICAI ) has released a Technical Guide on the functioning of Audit Committee and its Review Checklist providing a checklist for review of the Audit Committee.
The Technical Guide aims to provide guidance on Duties and Role of the Audit Committee for ensuring its effectiveness. Important Frequently Asked Questions from part of the Guide. A Specimen Checklist for Performance Evaluation of Audit Committee finds a place in the Publication.
The Committee is inter alia responsible for liaison with the management; internal and statutory auditors, reviewing the adequacy of internal controls and compliance with the significant policies, procedures and reporting to the Board on key issues. The idea of having independent directors on the Committee originates from the concept of effective Corporate Governance. The Independent Directors bring objectivity to Board decisions, protect the common interest of the company and its stakeholders. The Companies Act 2013 requires certain classes of companies to constitute Committee.
“I am happy that the Corporate Laws & Corporate Governance Committee has taken this initiative of bringing out the publication titled- “Technical Guide on the functioning of Committee and its Review Checklist” which is a comprehensive and self-contained reference document for the guidance of committee on its functions, role, duties and ensuring effectiveness,” ICAI Chief CA Naveen N D Gupta said.
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