Importantandurgent !!! “If you want to get higher score from acca f1, please read this article!”

Responsibility of audit committee

The duties of the audit committee – to monitor and review internal control and risk.
An audit committee consists of independent NEDs who are responsible for monitoring and reviewing the company's internal financial controls and the integrity of the financial statement. The audit committee acts as an interface between the full board of directors and both the internal and external auditors.

Responsibilities of audit committees. These include the following:
 Reviewing accounting policies and financial statements as a whole to ensure that they are appropriate and balanced.
 Review systems of internal controls and risk management within the organization. (Note that risk management may be dealt with by a separate committee – the risk committee.)
 Agreement of the work agenda for the internal audit department, as well as reviewing the results of internal audit work.
 Making recommendations to the board, for them to put to the shareholders, relating to the appointment and removal of the external auditors as well as their remuneration and terms of engagement.
 Liaising with the external auditors, in particular relating to the review and monitoring of the external auditor’s independence and objectivity as well as the effectiveness of the audit process.
The main advantage of an audit committee is that it allows auditors to report their findings to independent directors. This avoids a number of possible problems, including:
 External auditors do not have to report frauds or errors to the executive directors, who may be responsible for perpetrating them.
 Internal auditors are unlikely to feel comfortable reporting systems weaknesses to the executive directors, who will have designed the systems.

36. 
    Ineffectiveness
    

Question will be like this:
8. As a direct result of an employee's ineffectiveness at work, potential problems were not identified and consequently no counter measures could be taken in time to prevent the problem arising. Which of the following most accurately reflects the nature of the employee's ineffectiveness?

• 
  Failure to communicate the potential problem
  
• 
  Failure to meet deadlines
  
• 
  Failure to meet quality requirements
  
• 
  Failure to produce the quantity required
  

37.