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- Foreword and Introduction
- 1. Introduction
- 2. The Audit Committee’s functions and responsibilities
- 3. Membership of the Audit Committee
- 4. Relationships with key stakeholders
- 5. Conduct of the Audit Committee
- 6. Assessment of the Audit Committee’s performance
- Appendices
- Part 2
- Part 3
PDF of Checklists And Proforma [0.5MB]
1. Introduction
Audit Committees play an important role in the governance framework of entities in both the public and private sectors. They are recognised as a valuable provider of independent assurance and advice on the entity’s operations to the Chief Executive/Board of Directors (Board). They also provide independent assurance and advice to senior management and management committees to improve business performance.
Audit Committees do not displace or change the management accountability arrangements within entities, but enhance the existing governance framework, risk management practices, and control environment, by providing independent assurance and advice on key elements of an entity’s operations.
Each public sector entity is different and each has its own particular governance framework, risk and control structures and supporting policies and processes. As such, the precise role each Audit Committee undertakes should be determined within the context of each entity’s governance framework and other assurance mechanisms in place.
The ANAO has not attempted to establish one model that all entities should adopt. Rather, this Guide outlines a range of principles and practices that are applicable to a better practice Audit Committee.
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