In short
The audit committee is a committee of the board of directors that oversees financial reporting, internal control and the external audit. In public companies it must consist of independent directors and is directly responsible for appointing and overseeing the auditor.
Key takeaways
- It is often the body the auditor communicates with as 'those charged with governance'.
- Public companies must disclose whether at least one member is a financial expert.
- It pre-approves the services the auditor provides to a public company.
Where it's tested
AUD: Written Representations & Completing the Audit — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
Management refuses to sign the written representation letter at the conclusion of the audit. What is the appropriate response?