Audit Committee’s vital role

The Securities Commission’s (SC) Audit Oversight Board (AOB), in a press release on April 8, reminded audit committees (ACs) of public-listed companies (PLCs) of the importance of driving audit quality improvements by engaging their auditors to promote an effective audit process. The AOB stated that this was in line with the SC’s efforts to improve corporate governance and increase investors’ confidence in the quality and reliability of audited financial statements. It was also part of the AOB’s capacity building initiatives for the accounting and auditing industry. Going through the Listing Requirements (LR), it immediately falls into place why so much emphasis is placed on the AC and why so much more is expected of it. Under the LR, it is the AC that deals exclusively with the external auditors, the audit plan, the auditor’s evaluation of the system of internal controls and the audit report.