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Who are those charged with governance. Does it include the committees of non executive directors like audit committee?
Thanks
Yes – for a listed/public entity complying with a code of governance (.e.g UK Code), it will be the audit committee (only). Not the nomination or remuneration committee because they have other roles and responsibilities.
Here is a definition: Those charged with governance – The person(s) or organizations(s) (for example, a corporate trustee) with responsibility for overseeing the strategic direction of the entity and obligations related to the accountability of the entity. This includes overseeing the financial reporting process.
“If the auditor suspects management or those charged with governance are involved in the non compliance, the matter should be reported to the audit committee or supervisory board”
In the above line copied from my text, those charged with governance and audit committe are seperate bodies.
Im totally confused
If you replace the or (x2) with / (x2) I think this is saying:
“If the auditor suspects management …. , the matter should be reported to the audit committee (i.e. TCWG)”
“If the auditor suspect those charged with governance …, the matter should be reported to the supervisory board”
I think the 1st sentence is sufficient. In some countries there are separate Supervisory boards, but you don’t need to know about different board structures for AAA.
This would also make sense:
“If the auditor suspects management (as a whole) or a member of those those charged with governance are involved in the non compliance, the matter should be reported to the audit committee (i.e. as a whole)”. It’s simply saying report up/more widely.
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