Expert: Don Sadler - 1/23/2008

Question
Hi
I am a project manager and new to the auditing world. I have few basic questions and would really appreciate if you could help me better understand
1- role of audit committee and who constitutes it?
2- Perform test: is it sending the data request to the client?
3-Remediation plan: who is responsible to deliver it?  

Thanks lot

Answer
Sorry to be so slow in responding but I was out of the country.


1. The audit committee of publicly traded companies usually consists of various members of the board.  In non-profit organizations, committee members are typically drawn from the organization's governing board or Board of Trustees.  The role of the audit committee differs from one organization to another and is defined in the committee’s charter. Typical roles of the audit committee are to provide guidance to Internal Auditors, approve the prioritized work plan, and coordinate risk management activities.  See the links below for additional information.

2. I do not understand the question.  Please explain.

3. The remediation plan is typically developed and executed by the auditee.  It is common for the auditor to make recommendations that are usually incorporated into the remediation plan.  As a best practice, the auditor does not create a remediation plan as there would be a conflict of interest when the auditor tests the effectives of the remediation



Audit committee links:

Audit committee - Wikipedia
http://en.wikipedia.org/wiki/Audit_committee

Audit Committee Institute
http://www.kpmg.com/aci/

Audit Committee Effectiveness Center
http://www.aicpa.org/audcommctr/homepage.htm