According to the LMV, the primary responsibility of the Audit Committee is to review and give an opinion to the Governing Body regarding:
- Financial statements and rules of the company's financial situation
- External Audit
- Legal and fiscal regulatory compliance
- Transactions with related parties
- IT security
- Internal control systems
- Ethical code and system suggestions and complaints
- Internal Audit
Best Corporate Practices
The Audit Committee must ensure that both internal and external audits are conducted with objectivity and independence, ensuring that the financial information that reaches the Board of Directors, shareholders and the public in general should be sufficient, timely and should reasonably reflect the financial situation of the company; it should be issued and disclosed responsibly and transparently.
Similarly, the committee must continually validate the company's internal controls and the process of issuing financial information; it should analyze and evaluate related party transactions and identify potential conflicts of interest.
Among the specific practices recommended for the Committee are:
- To recommend candidates for external audit services
- To review the work program and external and internal audit reports and the results of these reviews
- To contribute to the definition of the general guidelines of internal controls and evaluate their effectiveness
- To issue regular reports about the level of compliance
According to the provisions of the stock market law/act, the audit committee should be composed exclusively of independent directors. There should be a minimum of three members appointed by the board, at the proposal of the President/CEO.
Learn More about the Audit Committee
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