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KPMG Audit Committee Institute
Singapore
Tool Kits
Leading and effective tool kits are developed to provide concise checklists and templates of the reporting and documentation required by audit committees. Each toolkit, which is being continually developed and updated, can be adapted to the circumstances of individual audit committees and companies.
Report on the audit committee’s activities - a framework
A recent report by the UK Financial Reporting Council (FRC) recommends that the annual report and accounts should contain a separate section that describes the role and responsibilities of the audit committee and the actions taken by the audit committee to discharge those responsibilities. A suggested framework for such a report is set out covering the role, composition and remuneration of audit committees, to internal financial control and risk management systems.
Evaluation of internal auditors
This is a checklist framework for an audit committee to evaluate their internal audit function. Such a review should be based on the audit committee's own experience as well as management and the external auditors. In addition, the head of internal audit should provide a self-assessment. This process may identify other issues relating to the audit committee's own performance, or the performance of management or the external auditors.
Evaluation of external auditors
This checklist framework for an audit committee helps to to carry out a formal review of the effectiveness and efficiency of their external auditors, without an audit tender. Such a review provides the audit committee with a disciplined approach to keeping the auditors' performance under review. It will also help to ensure that the auditors remain alert to the company's needs and to maintaining an appropriate relationship with the executive management, the audit committee and the board as a whole.
Assessment of audit committees
This self-assessment has been prepared on the basis that each audit committee member will complete it independently. The audit committee chairman would then lead discussion on the results of the questionnaire, focusing on those areas which clearly need improvement or where there is great variation in answers. Alternatively, the self assessment could be undertaken as a facilitated group activity led by the audit committee chairman or an external party.
Guide - Audit committee meeting agenda
A well thought out meeting agenda can greatly assist Audit Committees in ensuring they devote enough time to their roles and discharging their responsibilities effectively and efficiently. This guide is a comprehensive, but not exhaustive, list of issues that can be covered in each audit committee meeting. This guide can, and should, be tailored to the individual circumstances of the company.
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