Chapter12 - o Reviewing annually the charter of the audit...

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CG Chapter 12 Board Effectiveness Managing Board Committees The Audit Committee - Bridge btw independent external auditors and the boards - Avoiding possibility of powerful executive director becoming too close to auditors and resolving issues before they reach the board - Responsibilities of the audit committee: o Linkage btw eternal, internal auditor and board o Advising board on appointment of external auditor o Ensuring independence of external auditor o Reviewing the audit fee o Considering scope and process of audit by external auditors o Agreeing to scope of work and plans of internal audit, supervising their work o Ensuring that activities of external and internal auditor are coordinated o Reviewing with external and internal auditors o Reviewing other published information (narrative reports e.g.) o Reviewing the exposure of the company to risk
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Unformatted text preview: o Reviewing annually the charter of the audit committee itself, advising chairman of the board if changes are necessary The Remuneration Committee-Establish a formal and transparent procedure for developing policy on top executive remuneration, determining the remuneration packages of each director-Attract and retain good directors-Link reward with both corporate and individual performance The Nomination Committee-INEDs-Make recommendations on appointment of new directors to the board-Prevent board becoming a cosy club-Reduce possibility of dominant directors, including CEO and chairman-Classified board: a staggered board is one whose members terms of appointment are staggered, so that only a part of the boar retire each year (often 1/3) provides stability...
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This document was uploaded on 11/10/2011.

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