What is the audit committee?

The Audit Committee is a specialized management body within the company. Internal and external auditors will report their findings to the audit committee. It is the responsibility of the Committee to provide the direction, scope and support of the auditors in carrying out their work. The audit is a detailed review of the company's transactions and business processes. The Committee is separated from regular Board of Directors to ensure a fair and impartial audit control. All publicly traded companies are obliged to issue audited financial statements annually.

The selection of the audit company is the exclusive responsibility of the Audit Committee. They must define the scope of work, types of audits that will be performed and the frequency of audits. The standard process is to issue a proposal for audit services. Stake companies respond to the level of expertise, services and prices. The Committee creates a short list, performs interviews and makes a selection.

Financial audit is a review of TRA detailsnsacings that are randomly selected. The purpose of the audit is to provide assurance that the values ​​on the financial statements are accurate. All selected items are reviewed in detail to determine the level of trust that the readers should have in numbers and to ensure that the standard business process is adhered to.

There are also several other types of audits that can be performed. Systems or Operational Audit is performed to confirm that standard business practices are adhered to. The transactions are selected randomly and the responsible department is obliged to provide supporting documentation that a correlation process has been carried out.

The

audit report provides a summary of the auditor's finding at a high level, and then a detailed report on the audited transactions, the degree of compliance and any concerns that the auditor noticed. The Audit Committee is presented to this report and has the opportunity to question the auditors about their findings and in all the concerns they had. At the end of each audit, the Committee creates a message to the control bodyof the company. This report provides their comments and proposals for priorities. The combination of these two messages is used to define the list of weaknesses that need to be addressed before the next audit.