Write a 17 page essay on The Role of Audit Committee.
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The audit committee’s role is equally important in both the private and public sector. The effectiveness of the audit committee, the various flaws and inconsistencies in their functions and theoretical underpinnings are all considered along with examples of corporate collapses due to audit committee faults.
Audit committees’ role in the United Kingdom’s Parliamentary system of government stems from the concept of apt management and responsible expenditures considering that taxpayers’ money constitutes the capital that must be appropriated for public services (Hollingsworth, and White 1999). So, all disbursements must be within the constitutional provisions of the legislative system. Relatively, legislated protocols are in placed to ensure consistency, and to avoid corrupt practices that may lead to waste. In addition to the department of budget, the office of the commission on audit was created to oversee and assure legitimate expenditures and to avoid deficits as much as possible. Chances are high, that the members of the audit committee are certified public accountants and lawyers considering the nature of the role that the audit committee plays in the configuration of appropriate budget consistent with interpreted laws.
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