ANAO - Public Sector Audit Committees

3.4. Induction of new Audit Committee members

The Audit Committee should have a formal process to induct new committee members that provides them with sufficient briefings and information to understand their responsibilities and the expectations of the Chief Executive/Board about their role and performance.

The extent of each member’s induction will vary depending on whether they are an internal or external member, their role (if any) within the entity and their particular knowledge and experience. As a minimum, all new members should be briefed by the Chief Executive/Board and the Chair of the Audit Committee and be introduced to the Chief Financial Officer, the Chief Information Officer, Head of Internal Audit and other senior managers and the external auditor.

The information provided to new members should be tailored to meet their individual requirements and can include the information listed below.

Information for new Audit Committee members
The available information for new committee members should include: an outline of the entity’s governance framework and how the Audit Committee operates within that framework; the committee’s charter and recent committee papers and minutes (including details of outstanding issues); copies of the entity’s enabling legislation (where applicable), selected policies, such as Chief Executive’s Instructions or equivalent, and a copy of the entity’s most recent financial statements; the entity’s annual report, corporate plan, code of conduct, business and risk management plans; a briefing (supported by relevant documentation) on the entity’s risk management framework, control, compliance, audit and external accountability arrangements, as well as details of current issues related to those topics; and the internal audit charter, the strategic and annual internal audit plans, the committee’s forward meeting schedule, and recent internal and external audit plans and reports.

Information for new Audit Committee members

The available information for new committee members should include:

an outline of the entity’s governance framework and how the Audit Committee operates within that framework;
the committee’s charter and recent committee papers and minutes (including details of outstanding issues);
copies of the entity’s enabling legislation (where applicable), selected policies, such as Chief Executive’s Instructions or equivalent, and a copy of the entity’s most recent financial statements;
the entity’s annual report, corporate plan, code of conduct, business and risk management plans;
a briefing (supported by relevant documentation) on the entity’s risk management framework, control, compliance, audit and external accountability arrangements, as well as details of current issues related to those topics; and
the internal audit charter, the strategic and annual internal audit plans, the committee’s forward meeting schedule, and recent internal and external audit plans and reports.

When an external member joins the committee, it may be appropriate for more detailed information or presentations to be provided from various managers within the entity to assist the new member to gain the necessary understanding of the business. This could include site visits to assist in understanding the operations of the entity.

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