(ii) The effectiveness of audit committees could be improved in the following ways.
Appointment requirements
Appointments could be recommended by the annual general meeting. Alternatively certain stakeholders, for example employees could have the right to appoint a member. These measures might improve the independence of committee members. The term of office of committee members could also be limited to ensure the committee retained a
fresh perspective.
When nominating potential members, the selection process could be biased towards recruiting members with financial accounting experience or experience of large control systems. Members who have accountancy experience will be able to question the judgements management make when preparing accountancy information. 转自:考试网 - [Examw.Com
Expansion of responsibilities
There are various ways in which the committee’s remit might be expanded. They could have responsibility for reviewing compliance with laws and regulations such as environmental legislation or ethical codes. Certain transactions could also be referred automatically to them for review.
