Scribd Logo
Upload

Welcome to Scribd!

  • 66 views

    Audit Committee

    Uploaded by

    Spidy Mac
    The document summarizes the key aspects of an audit committee as per the Companies Act 2013 and SEBI (LODR) Regulation 2015 in India. It discusses the constitution of an audit committee for listed companies with minimum 3 directors of which the majority must be independent directors. The functions of the audit committee include recommending auditor appointment, reviewing financial statements and related party transactions. The audit committee must meet at least 4 times a year and the quorum requires a minimum of 2 independent directors.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Audit Committee

    Uploaded by

    Spidy Mac
    66 views5 pages
    The document summarizes the key aspects of an audit committee as per the Companies Act 2013 and SEBI (LODR) Regulation 2015 in India. It discusses the constitution of an audit committee for listed companies with minimum 3 directors of which the majority must be independent directors. The functions of the audit committee include recommending auditor appointment, reviewing financial statements and related party transactions. The audit committee must meet at least 4 times a year and the quorum requires a minimum of 2 independent directors.

    Original Title

    AUDIT COMMITTEE

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document summarizes the key aspects of an audit committee as per the Companies Act 2013 and SEBI (LODR) Regulation 2015 in India. It discusses the constitution of an audit committee for listed companies with minimum 3 directors of which the majority must be independent directors. The functions of the audit committee include recommending auditor appointment, reviewing financial statements and related party transactions. The audit committee must meet at least 4 times a year and the quorum requires a minimum of 2 independent directors.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    66 views5 pages

    Audit Committee

    Uploaded by

    Spidy Mac
    The document summarizes the key aspects of an audit committee as per the Companies Act 2013 and SEBI (LODR) Regulation 2015 in India. It discusses the constitution of an audit committee for listed companies with minimum 3 directors of which the majority must be independent directors. The functions of the audit committee include recommending auditor appointment, reviewing financial statements and related party transactions. The audit committee must meet at least 4 times a year and the quorum requires a minimum of 2 independent directors.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    You are on page 1of 5

    AUDIT COMMITTEE : SECTION 177

     Audit committee is one of the main pillars of corporate governance


    mechanism in any company.
     The committee is charged with principle oversight of

    Financial reporting and AIMS to enhance the


    integrity of company’s
    Disclosure.
    financial reporting.

    1) CONSTITUTION AUDIT COMMITTEE :

    SEBI ( LODR ) regulation 2015


    Companies act 2013.

     BOD of every listed public company Every listed entity shall constitute an qualified
    and such other class or classes of and independent audit committee.
    companies shall constitute audit
    committee.
     All listed public company.

     All public company having :


     Paid up share capital 10 cr or
    more OR
     Turnover 100 cr or more OR
     In aggregate, outstanding loans or
    borrowings or debenture
    exceeding 50 cr
    2) COMPOSITION OF COMMITTEE :

    A) AS PER companies act 2013 : section 177(2):


     Audit committee shall consists of minimum 3 directors. Out of
    which independent director should form majority.
     Majority of members of audit committee including its chairperson
    shall be person with ability to read and understand the financial
    statement.

    B) AS PER SEBI ( LODR ) REGULATION 2015:


     Audit committee shall have 3 director as members out of which at
    least 2/3 shall be an independent director.
     All members of audit committee shall be financially literate and at
    least 1 member shall having accounting related experience.
     The company secretary shall act as secretary of audit committee.
     The chairperson of audit committee shall be an independent
    director and he shall be present at AGM to answer shareholders
    queries.

     REVISE ADDITION : audit committee as its discretion shall invite the


    finance director, head of internal auditor, or any other executive to be
    present at the meeting of committee. Provided that the audit
    committee may meet without the presence of any executive of listed
    entity.
    3) FUNCTIONS OF AUDIT COMMITTEE :

     AS per companies act 2013 :


    MEMORY TECHNIQUE : REVA ( GUJRATI MOVIE NAME )
    o R2 E2 V A
     The recommendation for appointment, remuneration, and terms of
    appointment of auditor of company.
     Review and monitor of auditor’s performance and audit process.
     Examination of financial statements.
     Evaluation of risk management system.
     Valuation of undertakings or assests.
     Approval or any modification of transactions of company with related
    parties.

     AS PER SEBI ( LODR ) REGULATION 2015 :


    MEMORY TECHNIQUE : SERVO ENGINE OIL
    o S E R3 V O
     Scrutiny of inter corporate loans and investment.
     Evaluation of risk management system.
     Recommendation for appointment, remuneration, and terms of
    appointment.
     Reviewing with management system and financial statements.
     Reviewing with statement of use/ application of funds/ use of funds.
     Valuation of undertakings or assets of company.
     Oversight of listed entity’s financial reporting process.

     AUDIT COMMITTEE SHALL MANDATORY REVIEW THE FOLLOWING


    INFORMATION :
    MEMORY TECHNIQUE : M. S DHONI AND S M I T.

     Management discussion and analysis of financial condition.


     Statement of significant related party transaction submitted by the
    management.
     Statement of deviations.
     Management letters / letters of internal control weakness issued by the
    statutory auditors.
     Internal audit report.
     The approval, removal and terms of remuneration of chief internal auditor.

    4) NUMBERS OF MEETINGS AND QUORUM :


     AS PER CO.ACT 2013 = ACT IS SILENT.

     AS PER SEBI ( LODR ) REGULATION :


     Audit committee shall meet at least 4 times in a year.and not more than
    120 days shall elapse between two meetings.

    QUORUM : FOR AUDIT COMMITTEE SHALL EITHER BE :


    2 MEMBERS
    W. E IS GREATER. WITH AT LEAST 2
    OR INDEPENDENT DIRECTOR.

    1/3 OF THE MEMBER OF


    AUDIT COMMITTEE.
    NOTE : The requirement of minimum 2 independent director in the meeting of
    audit committee is new provision which must be complied by all listed entities.

    If you like it please share with every students.


    Thank you so much.
    Happy learning.

    You might also like