Audit Committee effectiveness

Independent Audit Limited produced a report entitled Audit Committee effectiveness –what it is, and how to assess it:

An analysis of the role and objectives of an audit committee and what to look out for when assessing the committee’s effectiveness.

A study of changes in US audit committee practice and the possible implications for SEC-registered UK companies.

Since they first appeared in the United States a couple of decades ago, audit committees have become universally established as A Good Thing. With one exception (Morrison continues to hold out) every major UK-listed company has an audit committee. Surprisingly, however, given their ubiquity, there is no generally accepted statement of what exactly an audit committee is for, or what constitutes effectiveness.

Read full Report in pdf format.