Boards of directors are re-evaluating its role and looking to enhance its effectiveness in providing a cornerstone to sound corporate governance.
In the United States, the Sarbanes-Oxley Act of 2002 (SOx) underscored the importance of the Audit Committee, and has identified the Audit Committee as pivotal to the control environment of any organisation. In Russia, the Corporate Governance code dedicates a full chapter specifically to the Audit Committee and its responsibilities.
No two Audit Committees will function in exactly the same way. A dynamic Audit Committee process is required to cater for the unique and changing internal and external influences impacting their organisation.
Effective Audit Committees are supported by fundamental "building blocks" - an appropriate structure and foundation, reasonable and well-defined responsibilities, and an understanding of current and emerging issues. Only through carefully designed practices can an Audit Committee maximise its contribution to an organisation. Audit Committees must understand these building blocks and the specific practices which can be used in implementing governance activities. By "benchmarking" their practices international best practice, Audit Committees can identify and select a 'set' of practices as the most economic, efficient and effective in its particular circumstances. This Toolkit describes such practices.
The Toolkit include following parts:
Useful resources and publications: