The Quoted Companies Alliance ("QCA") published its Audit Committee Guide for Small and Mid-Size Quoted Companies on 5 November 2014, replacing the 2009 edition. The 2014 edition reflects market best practice.
Main amendments from the 2009 edition are the following:
- A strong relationship between the audit committee, the board and third party auditors is emphasised. The 2014 edition includes a table detailing factors that help to indicate how well the audit committee is performing;
- Attention is drawn to the FRC's new Guidance on Risk Management, Internal Control and Related Financial and Business Reporting regarding performance of the audit committee and identification of systemic risk;
- The guidance has been expanded concerning the responsibilities of audit committee members, who are now expected to have more clearly delineated roles;
- Recommended practice guidance on anti-bribery and anti-corruption measures has been added;
- The order in which matters are discussed now reflects the audit committee's annual cycle;
- Agenda items for meetings are included in Annex A – whereas the 2009 edition suggested three meetings every year, the 2014 edition suggests four.
The Audit Committee Guide of QCA is available at:
http://www.theqca.com/shop/guides/.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
