No matter no matter if an organization employs independent auditors, audit committees are accountable for objectively evaluating the relationship of management together with the accountants and auditors. The committee monitors the management’s effectiveness in giving auditors together with the facts necessary to ascertain no matter if the company’s economic statements are ready in accordance with Commonly Accepted Accounting Principles (GAAP) and Commonly Accepted
Auditing Standards (GAAS), that are the specialist standards to which accounting and auditing companies are topic in performing their duties. Audit committees need to not get involved in performing audits; rather, they need to facilitate them. The internal audit committee delivers an necessary objective interface amongst a company’s management and its independent (outside) auditors to make sure that, constantly, the auditors’ opinions and certifications are depending on complete and correct facts in regards to the company’s
operations.
Audit committees are accountable for making certain that the organization maintains
a operate surroundings that
- Enables auditors to execute vital testing
- Encourages personnel to come forward with matters that may well be relevant for the audit course of action (see the later section “Handling complaints” for additional facts)
