Firm tasks audit panel members on accurate financial reporting, corporate governance
To entrench high level of corporate governance among listed firms, Audit Committee members have been urged to supervise companies’ financial reports effectively, and ensure that statements accurately show the monetary position of the business.
Besides, there is a need for this group to define their procedures in terms of internal control assessment and review.The Partner, Audit Services, KPMG, Nnenna Eluma, while addressing participants at an Audit Committee Seminar for Shareholders, in Lagos, said an in-depth understanding of the company’s business is required.She added that the committee must also check the internal audit plan for the year and how the plan covers significant operational areas within the organisation.
“They have a duty of care to ensure that the financial statements show accurately the financial position of the company and to do that is to have a deep understanding of the business of that company.“If they understand the business, they will understand the content of the financial report of the business and ask incisive questions.
“For best practice they should have meetings on quarterly basis ask management relevant questions, demand for the internal audit report, check for lapses that they have reported and procedure followed to address those issues.“He must check the internal audit plan for the year and how the plan covers significant operational areas within the organisation and engage the external auditor too.”
Another Partner of the firm, Ayo Soyinka, while speaking on “Corporate Governance, Responsibilities of Audit Committee Members,’ said corporate governance is concerned with holding the balance between economic and social goals, and between individual and communal goals.He pointed out that the governance framework is there to encourage the efficient use of resources and accountability for the stewardship of those resources.
“It is therefore necessary for the survival and long term success of any business organisation. Therefore, audit committees must monitor implementation of new standards, impact on business and regulatory environment.”
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