- 1 Marks
AAA – L3 – SA – Q2.3 – Audit Committee Functions
Question
According to the Code of Corporate Governance for Listed Companies 2020, which ONE of the following is a function of the audit committee:
A To make recommendations to the Board with respect to the effectiveness of internal controls
B To review the risks facing the company
C To make recommendations on induction and training to the Board
D To recommend a remuneration policy for directors to the Board.
Answer
A
Explanation:
The audit committee’s role includes making recommendations to the Board on the effectiveness of internal controls. Reviewing risks is the responsibility of the risk committee, induction and training recommendations fall under the nominating committee, and remuneration policy is handled by the remuneration committee. Thus, A is the correct answer.
- Tags: Audit committee, Corporate Governance, ICAG, Internal controls
- Level: Level 3
- Topic: The regulatory environment
- Uploader: Salamat Hamid