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Mam could you please clear to me the responsibility of Audit committee with regards to internal controls…
All this while I thought, mgmt and directors monitor the internal controls but in the answer key it says:
”Having an internal audit function will help the
audit committee to discharge their responsibility for monitoring
internal controls.”Isn’t audit committee only supposed to review internal controls? please help.
I don’t know what you are asking – are you asking what is the difference between review and monitoring? Again – if you take a look at the UK Code https://www.frc.org.uk/directors/corporate-governance-and-stewardship/uk-corporate-governance-code you will see references to monitoring/review/monitoring and reviewing/reviewing and monitoring – I don’t think you need to worry about whether they mean different things.
25. The main roles and responsibilities of the audit committee should
include:
• monitoring the integrity of the financial statements ….
• …
• reviewing the company’s internal financial controls and internal
control and risk management systems …
• monitoring and reviewing the effectiveness of the company’s
internal audit function …
• …
• reviewing and monitoring the external auditor’s independence and
objectivity;
• reviewing the effectiveness of the external audit process … ;
• …I apologize for not being clear with my question,
but I think the above answers my query which was : that Audit committee is responsible for reviewing the internal controls and not for monitoring them since monitoring internal controls is the responsibility of management.Thank you mam
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