Forums › ACCA Forums › ACCA AA Audit and Assurance Forums › Need Help….02 questions
- This topic has 5 replies, 3 voices, and was last updated 14 years ago by Anonymous.
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- April 10, 2010 at 4:06 am #43467
Question # 1
Given below is one of the principles of the Combined Code of Corporate Governance,
"The board should establish formal and transparent arrangements for considering how they should apply the financial reporting and internal control principles for maintaining an appropriate relationship with the COMPANY’S AUDITORS".Please guide me whether in the above sentence, the COMPANY’S AUDITORS refer to:
1- Internal Auditors
2- External Auditors
3- Both 1 and 2Question # 2
In the case of a public listed company, who is at the top most position, or who is the person to whom the Audit Committee should report to?
Managing Director or The Chairman.April 11, 2010 at 3:59 pm #58949AnonymousInactive- Topics: 0
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hi,
1. company’s auditor allways refers to external aiditor
2. audit committee is allways directly responsible to the board of directors, not executive directors, becoz ED-s prepare financial statementhope that will help
April 12, 2010 at 11:13 am #58950thanx
but external auditor are not the employees of the company so how they can be referred to as Company’s auditor….. and BODs are also responsible for the preparation of financial statements not only MD.. so…me still confusedApril 12, 2010 at 8:50 pm #58951AnonymousInactive- Topics: 0
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hi,
1. As regard to company auditor refer to glossary of audit terms of IFAC IAASB handbook, company auditor is specific term, which indicates that an auditor is the auditor of any client, company.
2. Corporate governance principles mentioned in f8 are based on combined code of UK. according to the code there are two tier system in corporate governance:
1. board of directors (executive directors) – prepares financial statements
2. supervisory board – supervises board of directors. in supervisory board we have several subcommittees: audit committee, nomination committee, remuneration committees etc. majority of these directors should be non executive, in order to preserve non biased evaluation of the work done by executives in the company.Now, internal auditors are directly accountable to audit committes (subcommittes of supervisory board). external auditors allways use audit committe as a platform in relationship with board of directors, this is like formal chat between them.
Now should be clear,
my tip, google combined code and IAASB handbook and READ them.
April 13, 2010 at 2:29 am #58952hey,
thanks
this was really helpful. thanku very muchApril 13, 2010 at 10:10 am #58953AnonymousInactive- Topics: 0
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I want to be continued as a member of the OT.
Thanks,
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