QCA Audi Committee Guide for Small and Mid-Size Quoted Companies
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- QCA Audit Committee Guide for Small and Mid-Size Quoted Companies
The Quoted Companies Alliance (QCA) has published its Audit Committee Guide for Small and Mid-Sized Quoted Companies. The guide assists audit committee members to be effective in their roles, meeting the expectations of investors and complying with regulatory best practice for such companies.
It covers the operational aspects of the committee, the roles and responsibilities of committee members and those that work with the committee, the committee's internal focus on risk management and internal control and its external focus on the corporate reporting cycle, and the committee's report in the annual accounts and reports.
The new guide replaces the QCA's Audit Committee Guide for Smaller Quoted Companies, published in February 2009. In addition to reflecting recent regulatory changes and best practice, the revised guidance places greater emphasis on the audit committee's role in inspiring trust in a company.
It includes a table of indicators that can assist in evaluating the effectiveness of the audit committee and in identifying potential weaknesses.
The narrative of the roles and responsibilities of audit committee members has been expanded and recommendations are made for the contents of an induction pack for new committee members.
Additions have been made to the section on risk management and internal control, including new guidance on anti-bribery and anti-corruption.
The sections on the accounts cycle and external auditors have been integrated into one section, reflecting the audit committee's annual cycle of work associated with producing the annual accounts and reports and liaising with the auditors. Some guidance is given on audit tendering.
Agenda items for audit committee meetings throughout the year are included as an appendix.
Danielle Harris is a Senior Associate and Professional Support Lawyer in Fieldfisher's Corporate Group in London.