An audit committee should adopt a formal written charter that is focused on the mission of the audit committee.
The complexity of the organization’s activities, its stage of development and magnitude of its issues will determine the audit committee’s agenda.
The audit committee needs to participate in the agenda-setting process up front along with other appropriate individuals e.g., external and internal auditors and management , and the audit committee chair needs to preside over these meetings to ensure adherence to this agenda.
The NACD Blue Ribbon Commission on the Audit Committee recommends the following principles that it believes provide “a foundation for engaged, effective audit committee oversight.”
We believe that an audit committee should conduct an annual assessment of its own effectiveness. There are a number of ways to conduct this self-assessment.
We believe that an audit committee should conduct an annual assessment of its own effectiveness. There are a number of ways to conduct this self-assessment.