The audit committee at AStunIT PLC, should

TheUK Corporate Governance Code regulates principals the scope of duties and theway how should be appoint audit committee. Accordingto the UK Corporate Governance Code an audit committee at AStunIT PLC, shouldconsist at least of three non – executive directors, wherein one of them shouldhave appropriate financial experience. Moreover qualification from majoraccountancy bodies’ e.

g. ICAEW. The auditing committee should be appoint by theboard and should be approve by the nomination committee.

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Appointments shouldlast 3 years, with the possibility of extending this period to another 3 years.  The auditing committee should not be involvedirectly in any operational management activities” (Council, 2016). Therole of auditing committee at AstunIT should require: “Regularaccuracy check of the financial statement, and integrity of data supplied aswell as monitoring any official announcement to the report, hence improve reliabilityoffinancial statement report.Formalassessment of internal auditor’s neutrality, resulted in more effective communicationbetween executives, managing group and external auditors.

Improvementand implementation of non – audit services procedure.Proposalto the board of Directors in regards to the nomination, re – nomination orwithdrawal of the external auditor. Assessingthe internal audit performance likewise inside control and risk managementsystem as a consequence information reported by internal audit strengthens their credibility and increase value to internal controlrecommendation.Risediscussion and take in consideration any further concerns in regards toactivities of directors and internal control, furthermore create the reportingnetwork for any irregularities, hence preventing from wrongful or criminalfinancial deception” (ICAEW, n.

d.).   “Toenhance the productiveness an audit committee, primarily should exist positiondescription for the audit committee chair, which should consist of foremostprincipals and regulatory requirements. Without an effectual chair, an auditcommittee activity is more likely to fail” (Leblanc, 2007).  “Additionallyshould be provide induction training for a new members of auditing committee.Furthermoreaudit committee members should have deeper understanding of management role andwhich factors have got an impact on their decision, which can lead to financialstatement manipulations, hence should receive regularly report from managers inregards to system efficiency to evaluate and control business financial risk. Additionallyunderstand an approximate calculation or judgment on the value.   Theaudit committee should held meeting in regular basis to discuss currentsituation and issues arising within an organisation.

In addition they should organise,at least one a year, meeting with external and internal auditors withoutpresence of members of managerial group” (Assurance, n.d.).  “Theauditor of AStunIT plc is legally responsible for civil as well as criminal abreach of the law.

Additionally criminal law is related to an organization ande.g. government, “while civil law applies to disagreement between individualsand a company”.  Theauditor responsibilities are regulated by the Company Act 2006, in particularsection 495 is concerned about auditor’s report of company’s yearly accounts.

If the auditor purposely provide misleading, false and untrue information is asubject to penalty and can be prosecuted based on criminal law. Furthermorecivil law consist of two parts: contact and tort law, which determineprincipals for auditor’s liability to client as well as third parties. Undercontract law shareholders can look for breaching of contract obligations by theauditor, which are include in engagement letter” (TV, n.d.).           


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