ABSTRACT
How do effective directors ensure that the company’s financial statements are prepared in accordance with the applicable financial reporting framework and that the company’s internal controls framework is functioning?
Based on a framework of global corporate governance best practice, which can be used in all organisations anywhere in the world, this chapter of Questions To Ask (QTA) in the boardroom gives a high-level but succinct introduction to external auditors.
All directors should ensure that the 5Ps (Proper Planning Prevents Poor Performance) of success with regard to audit are considered. A well-planned audit process is a good starting point to ensure efficiency of the audit. The resourcing of the external audit team is key alongside how key judgements are handled and the scope of the audit. The board should meet with the external auditors without executive management present to go over any concerns the auditors or the board have.
The chapter’s headings lead into outlining key Questions To Ask in the boardroom, giving the reader further insight into how to initiate discussions about the practical details requiring the attention of the board.
