2.2.2.1 Audit committee

The audit committee’s role is ‘to review the scope and outcome of the audit, and to try to ensure that the objectivity of the auditors is maintained’ (Mallin 2007: 128). The audit committee has an important role in the relationship between the management board or the executive directors and the external auditor (Winter et al. 2002: 70). More specifically, it has the responsibility to review the integrity of the financial statements; to review the internal financial control and risk managements systems; to review the internal audit of the company; to make recommendations about the appointment, reappointment, removal, remuneration, terms of engagement of the external auditor; to review the internal auditor’s independence, effectiveness and objectivity; and to develop a policy for non-audit services of the auditor (Financial Reporting Council 2010: 19-20).