205058 Audit Co Activities

Audit Committee InstituteReport on the audit committee’s activities - a frameworkAs part of the UK response to the issues raised by recent major corporate failuresin the US, the Financial Reporting Council (FRC) was asked to set up a small group to develop the existing guidance for audit committees contained in theCombined Code. In January, that group, chaired by Sir Robert Smith, produced a report and guidance to assist boards inmaking suitable arrangements for their audit committees, and to assist directors serving on audit committeesin carrying out their duties.The report recommends that the annual report and accounts should contain a separate section that describes the role and responsibilities of the audit committee and the actions taken by the audit committee to dischargethose responsibilities. A suggested outline for such a report is set out overleaf.©2003 KPMG LLP, a UK limited liability partnership and the UK member firm of KPMG International, a Swiss nonoperating association. All rights reserved.Role of the audit committee Internal financial control and risk management systems Set out the main responsibilities of the audit committee and, if Describe the activities carried out during the financial year in possible, the web addresses where detailed terms of reference can order to review the integrity of the company’s internal financialbe found. control and, where requested to do so by the board, risk management systems. Composition of the ...