Question

How do audit committees provide balance? What issues may arise from them? What characteristics should a person on an audit committee have?

Answer 1

Audit committee providing balance following

9 Traits of an effective Audit Committee

• Intellectual curiosity and professional scepticism.
• Courageous in making tough decisions.
• Balanced, ethical approach to whistleblowing.
• Oversight of key risks (not just financial)
• Excellent relationship builders.
• Ability to build and develop a strong team.
• Able to challenge the external auditors.
• Good listening skills

• : Responsibilities of the audit committee typically include:(issue arises)

• Overseeing the financial reporting and disclosure process.
• Monitoring choice of accounting policies and principles.
• Overseeing hiring, performance and independence of the external auditors.
• Oversight of regulatory compliance, ethics, and whistleblower hotlines.

• : Characteristics of an Effective Audit Committee

• Who Should Serve on Your Audit Committee? An audit committee must be composed of the right people with the right mindset and relevant expertise to be successful. ...
• Creating a Charter. ...
• Monitor Financial Reporting. ...
• Provide Risk Management Oversight. ...
• Protect Your Company from Fraud. ...
• For More Information.