Chapter 12 ÔÇô Managing Board Committees282-285

Chapter 12 ÔÇô Managing Board Committees282-285

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Chapter 12 – Managing Board Committees The Audit Committee - Essential and original role of the audit committee: o Bridge between the independent external auditors and the board o Avoiding the possibility of powerful executive directors such as the CFO or CEO, becoming too close to their auditors and resolving issues before they reach the board - Standing sub-committee of the main board - Responsibilities: o Advising the board on the company’s systems of internal mgmt o Oversight of internal audit o Liaising with the external auditors o Reviewing financial information to be provided to shareholders and others o Advising the board on matters of the board accountability o Etc. - Committee will negotiate the audit fee and make recommendations to the board on auditor appointment - Board will rely on its audit committee to ensure that a balanced and understandable assessment of the company’s position and prospects is presented to shareholders and other legitimate stakeholders - Expected to have formal and transparent arrangements applying financial
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Chapter 12 ÔÇô Managing Board Committees282-285

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