Business Ethics and Corporate Governance, Second Edition

MANDATORY RECOMMENDATIONS

Audit Committee

An audit committee is the bedrock of quality governance. An effective audit committee is a pre-requisite for achieving high standard of governance. The committee recommended a bigger role for the audit committee. The committee suggested that the audit committee of publicly listed companies should be required to review the following information mandatorily:

1. Financial statements and draft audit reports including quarterly and half yearly information.
2. Management discussion and analysis of financial condition and the results of operations.
3. Report relating to compliance with laws and risk management.
4. Management letters of internal control weaknesses issued by statutory internal auditors.
5. Records of related ...