Depending on the size, nature and complexity of the firm it may be appropriate to set up an audit committee.
An audit committee could:
- examine management’s process for ensuring the appropriateness and effectiveness of its systems and controls;
- examine the arrangements made by management to ensure compliance with requirements and standards;
- oversee the internal audit function; and
- provide an interface between management and external auditors. An audit function should have an appropriate number of non-executive directors and formal terms of reference.
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