ACCA SBL Syllabus F. Organisational Control And Audit - Audit Committee & Internal Control - Notes ^{6 / 8}

Who is in the Audit Committee?

Entirely NEDs (at least three in larger companies), of whom at least one has had recent and relevant financial experience

What is its Key roles?

1. Oversight

2. Assessment

3. Review 

   of other functions and systems in the company.

What is the Most important areas for attention regarding IC?

• Monitoring the adequacy of internal controls involves analysing the controls already in place to establish whether they are capable of mitigating risks

• To check for compliance with relevant regulation and codes

• Playing a more supervisory role if necessary, for example reviewing major expenses and transactions for reasonableness

• Checking for fraud