Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › board minutes
- This topic has 1 reply, 2 voices, and was last updated 1 year ago by Kim Smith.
- July 16, 2021 at 6:50 am #627888aarti2407Member
- Topics: 36
- Replies: 8
“Inspect board minutes for management’s discussion on actions to be taken regarding the non-compliance.”
maam does this mean all board meetings are recorded? and auditor has access to all of them, regardless of how confidential that might be?July 16, 2021 at 7:55 am #627899Kim SmithKeymaster
- Topics: 102
- Replies: 6942
Yes and yes.
A board meeting will have an agenda – including agreeing the minutes of the last meeting (first item on the agenda) and “any other business” (last item on the agenda). Someone (e.g. the company secretary, where there is a company secretary) will “take minutes” of the meeting – which will not be verbatim but will record the main points and, most importantly, any agreed action. In the UK, accurate minutes of board meetings are required to be kept for at least 10 years (Companies Act 2006).
If, for example, the board is discussing threatened legal action by an employee for “unfair dismissal”, the agreed action might be – “let’s wait and see if he sues, it’s just retaliation because he was dismissed for gross misconduct” – or it might be “let’s offer him $x if he signs a non-disclosure agreement (to make the problem go away)”.
There is nothing “too confidential” for the auditor to know.
- You must be logged in to reply to this topic.