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Hi sir, I’ve just listened to the first 2 chapters and read thru the notes, however how does corporate governance tie in with audit? Also the roles of audit committee why does that come under internal risk and control under UK principles? Is it worthwhile remember the principles word for word or is it something that isn’t asked much in the exam?
The board is accountable to the shareholders.
The financial statements present an account to the shareholders of the board’s stewardship.
The auditor audits the financial statements to given them credibility.
The audit committee is one of the committees that assists the board in discharging its responsibilities – it enhances auditor independence because the auditor can report concerns to the committee, not just to the board.
I don’t understand what you mean by “why does that come under internal risk and control under UK principles?” – where else would you put it?
Nothing in AA has to be leart “word-for-word” – you should however learn what the five topics of the principles are.
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