What is the relationship between the audit committee and the board of directors?

      

What is the relationship between the audit committee and the board of directors?

  

Answers


Wilfred
The board of directors establishes the audit committee. However this committee should be
independent of the board to be able to exercise its responsibilities.

Some of the members of the board may be appointed members of the audit committee, usually
non executive members.

The audit committee reviews or provides an oversight over some of the responsibilities exercised
by the board. E.g. the audit committee could review significant accounting policies chosen by
the board to ensure that such policies are appropriate to the organization and result to credible
financial information.

The audit committee enhances and improves communication between the external auditor and
the board and between the board and the internal audit function.
Wilfykil answered the question on April 11, 2019 at 09:46


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