Statutory backing
Audit committees may become more effective if their establishment by certain organisations is made compulsory. The recommendations of internal audit will also be reinforced by stricter accounting and auditing standards.
Improvement in operations
Changes that might improve the way audit committees operate include the following.
(1) Having clear terms of reference agreed by the board
(2) Establishment of an annual plan giving details of the areas on which the committee will focus
(3) Establishment of standards for the frequency of, and form of reporting to, the main board
(4) Regular review of the effectiveness of the audit committee including whether its recent work has been correctly focused.
(b) Dealing with complaints
