Audit Committee v. Revision Commission Audit Committee v. Revision Commission OECD/EBRD Conference on Corporate Governance of Banks in Eurasia Charles T. Canfield Senior Corporate Governance Officer International Finance Corporation April 30, 2008 London, England
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Audit Committee v. Revision Commission · Audit Committee v. Revision Commission OECD/EBRD Conference on Corporate Governance of Banks in Eurasia Charles T. Canfield Senior Corporate
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Audit Committee v. Revision CommissionAudit Committee v. Revision Commission
OECD/EBRD Conference on Corporate Governance of Banks in Eurasia
Charles T. CanfieldSenior Corporate Governance Officer International Finance Corporation
April 30, 2008
London, England
An Audit Committee
is not =
a Revision Commission!!!
DefinitionsDefinitions
• Audit Committee
• Revision Commission, aka “audit committee” and or “audit commission”
A Body formed by a company's supervisory board (board of directors) to oversee audit operations and circumstances. It selects and appraises the performance of the external auditor. In accordance with most jurisdictions, the Audit Committee must be composed of outside directors. Besides evaluating external audit reports, the Committee should oversee the internal audit function and should be involved with public disclosure of corporate activities. Often referred to as Audit Committee of the Supervisory Board
1. A body elected by the shareholders to control the operations and financial activities of the company. (Azerbaijan CC)
2. A body elected by the shareholders that exercises control over financial and business activity. (Ukraine LOB)
3. Shareholders' body responsible for control over the commercial (financial) activity of management. (Ukraine company law)
4. Every Bank shall have an Audit Commission . . . Appointed by the AGM, of which no member shall be a member of the Supervisory Council of Management Board. (Law of GE on Activities of Commercial Banks)
Origins Origins –– Audit CommitteeAudit Committee
• 1940 - The SEC recommended the establishment of audit committees (the SEC recommended that shareholders elect the auditors at annual meetings and a committee of non-officer directors nominate the auditors. The NYSE had a similar recommendation.
• 1967 - The AICPA recommended that publicly held corporations establish AC to nominate the auditors and discuss the audit.
• 1977 - NYSE required each domestic corporation to establish and maintain an AC of outside directors.
• 1999 Following recommendations of the Blue Ribbon Committee on Improving the Effectiveness of Corporate Audit Committees, SEC requires registrants to disclose information about AC composition and practices