Name Professor Course Date Roles and Responsibilities of the Audit Committee Audit Committees have existed for a long time in the real corporate world and its roles and responsibilities in an organization have evolved from time to time. Generally an audit committee can be defined as a group of either three independent members mostly directors that have no connection to the company management tasked with the responsibility of internal company controls and oversight to financial reports. This paper seeks to establish the roles of Audit Committee in relation to its composition appointment reappointment and removal of auditors monitoring of internal controls and reviewing the committee's independence and objectivity as well as the engagement of auditors to non-audit services. Roles and Responsibilities of the Audit Committee As stated an audit committee should be established by a board of at least three members or in some cases two depending on the the executive board and entire management committee. As discussed Audit Committee plays an essential role in the governance and effectiveness of organizational processes. As stated it is mandated in providing oversight on risk management internal control functions governance of efficiency and economy to maximize company's benefits. As reviewed Safestore Company has formulated principles and guidelines to guide the operation of the audit committee. Generally the Safestore company has demonstrated adherence to the requirements of the UK Corporate Governance Code about committee composition and its roles in appointment reappointment and termination of members monitoring of internal control function as well as review and monitoring of auditor’s objectivity and provision of non-audit services. Works Cited Safestore Holdings Plc. Annual Report 2016 Council Financial Reporting. "Guidance on audit committees." London: FRC (2016). Rezaee Zabihollah Kingsley O. Olibe and George Minmier. "Improving corporate governance: the role of audit committee disclosures." Managerial Auditing Journal 18.6/7 (2003): 530-537. [...]
Assignment One of the principles of the UK Corporate Governance code is Accountability : 1. (33.33% marks) Explain the role and responsibilities of the Audit Committee in relation to the following requirements of the Code: • The composition of its Audit Committee • The appointment, reappointment and removal of Auditors • The establishment and monitoring of the internal audit function • Reviewing and monitoring the Auditor’s independence and objectivity, including the engagement of the auditor to supply non-audit services . 2. (66.66% marks) Explain how the Audit Committee of a chosen company has demonstrated its compliance (or not) with the above requirements of the code. all of the information provided and therefore do not need more research.