The Role of Audit Committee Essay Example | Topics and Well Written Essays - 4250 words

The Role of Audit Committee - Essay ExampleThe canvass committees enjoyment 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 component in the United Kingdoms Parliamentary system of politics stems from the concept of apt management and responsible expenditures considering that taxpayers gold constitutes the capital that must be appropriated for public services (Hollingsworth, and White 1999). So, all disbursements must be deep down the constitutional provisions of the legislative system. Relatively, legislated protocols are in placed to ensure consistency, and to avoid corrupt practices that whitethorn lead to waste. In addition to the department of cypher, the office of the commission on audit was created to oversee and image legi timate expenditures and to avoid deficits as much as possible. Chances are high, that the members of the audit committee are show public accountants and lawyers considering the nature of the role that the audit committee plays in the configuration of appropriate budget lucid with interpreted laws.As far as audit committee role in the Parliament is concerned, the U... The destine of legal rules are contained in the Supply procedure documents. Normally, an annual audit report is submitted to the legislative luggage compartment at the end of the fiscal year (Hollingsworth, and White 1999).In the preparation of an annual budget that bequeath cover expenditures for the subsequent fiscal year, the bureaucracys independent subdivisions perform three general standard functions 1) set the budget allocation for the year 2) rank expenditures according to importance 3) at the release of an approved budget for disbursement, asses, evaluate, and audit the values of the supposed expenditures. Subsequently, after the documents are submitted to the executive department, the older management will collate and bring up to support the tentative annual budget. This annual budget will then be submitted by the senior management to the parliament. The legislative body will deliberate on the budget extensively prior to endorsement. Consequently, whatsoever part of the budget appropriation is found substantive the legislative body will cast their vote on it, making the same available for disbursement. 4) Finally, after all the funds appropriated were approved and disbursed according to the plan, the account commission will issue a corresponding report which will be dully evaluated by the audit commission for proprietary considerations (Hollingsworth, and White 1999). However, the constitutional analysis, in particular by lawyers, has tended to underplay the significance of audit, especially the role of the Comptroller & Auditor General (Deloitte & Touche, 2009) and National Au dit Office in the accountability of government (Hollingsworth, and White 1999). Audit Committee