Effective decree of the audit committee part one

The effective decree of the audit committee part one:

The effective decree of the first part of the audit committee, which you will be familiar with in this part.

Although many factors can affect the effectiveness of audit committees.

Their identification can be a comprehensive research topic.

However, in this article, some actions that can affect the work of audit committees are explained as follows:

1- Agreement to set up a charter that specifies duties, roles, responsibilities, skills and experiences.

And the members of the committee should be committed to it and perform their role effectively.

Without a strong written charter to guide them, the Habersi Committee doesn’t know how to move forward, Maro and Pasteur say.

The charter should not know the skills and experience of the members of the audit committee as to how it should move forward.

The charter should specify the skills and experience of the members of the audit committee to guide the group in achieving its objectives.

In this regard, it should be mentioned in the charter that at least one member of the committee should have financial expertise.

This charter should specify the number of meetings, the topics discussed, the number and nature of communication between the committee members and the senior managers of the company, as well as independent and internal auditors.

One of the points that should be included in the charter is the authority and power of people.

In addition, the independence of the members from the senior managers of the company must be specified.

Other things that should be considered in the charter are:

• Employing appropriate consultants in necessary cases
• Examining and agreeing to the appointment, replacement and evaluation of the head of internal audit, the head of the committee and independent auditors
• Supervise and ensure that independent auditors will travel when necessary.
• Ensuring that non-assurance services are not provided to independent auditors at the same time

In addition to the above, the charter should ensure the right to monitor accountants’ expenses, how to use the company’s assets, comply with laws and regulations, determine the scope of internal auditors’ investigation and internal controls governing financial reporting.

Also, regarding the code of professional conduct, necessary things should be taken into consideration.

Finally, it is necessary that the prepared charter be reviewed annually.

Unless there are new business changes, new laws and regulations have been compiled.

Or the board of directors has made recommendations, necessary corrections should be made.

Also, how to hold meetings in urgent and necessary situations should be seen in the charter.

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