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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]
Better practice attributes of Audit Committees
A better practice Audit Committee is distinguished
by the following attributes:
Has a clearly documented charter that: has been determined having regard to relevant legislative requirements and the entity’s broader corporate governance framework; includes the committee’s responsibilities; and is approved by the Chief Executive/Board.
- Possesses broad business, financial management and public sector experience and expertise.
- Has a sound working relationship with the Chief Executive/Board.
- Is able to exercise discretion in determining how best to meet its responsibilities.
- Adopts an independent perspective and appreciates the separation of management and Audit Committee responsibilities.
- Is knowledgeable about the entity’s operations, particularly the entity’s risks and the arrangements in place for the management of these risks.
- Is chaired by a person who is able to lead discussions, encourage the participation of other members, and conduct meetings in an effective manner.
- Encourages and maintains an open and constructive dialogue with senior management, internal and external audit, and other committees.
- Effectively plans its activities to meet its responsibilities; focuses on the important issues and risks; is forward-looking; and adopts a continuous improvement approach in its interaction with entity management.
- Monitors the implementation of recommendations made by internal and external audit and other review activities.
- Ensures internal audit coverage: is aligned with the entity’s risks; is an appropriate mix of performance and compliance audits; and includes a focus on the areas of greatest risk.
- Receives an appropriate level of support and provides committee members sufficient opportunities to keep abreast of key developments in the entity and the public sector generally.
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