Organisations Overseeing Through The Audit Committee

Financial oversight of the financial reporting process is one of the major responsibilities of audit committee members. Besides the concerns of knowledge and understanding of financial reporting in accordance with national regulations, the audit committee must ensure a high quality and the availability of financial reporting, transparency embodied in financial statements, consistent and comparable from one period to another, but also amongst organizations. In these circumstances, the audit report for the financial reporting process oversight of the Board of the organizations must have a certain structure, as shown in Appendix - Audit Committee Report. Another important responsibility of the audit committee is the audit oversight function within the organization, which includes internal audit activity and external audit of the organization. In this regard, the audit committee assesses the internal audit function on the following elements: independence, objectivity, compliance audit methodology, findings and quality and the implementation of audit recommendations. The audit committee pays a particular attention to assessing the experience of auditors, required resources and relationship with the management of the organization. Regarding external audit, the audit committee assess the selection of financial audits, the level and quality of services provided and their reporting system. Also, the audit committee evaluates the relationship between the external audit and the internal audit within the organization and its relationship with the board, based on the analysis of the latest external audit report received by the organization. The article deals with the position of the Audit Committee, which is in a unique situation of assessing the audit function with the financial reporting system of general management of the organization, and analysis of any non-audit services required by the organization.