(2022), "Audit committees’ oversight role in developing countries: evidence from Jordan", Corporate Governance, Vol.
The audit committee oversight process code#
The feedback from this study can be extended to other developing countries with similar institutional environments, especially countries in the Middle East and North Africa. This study aims to explore the opinions of audit committee (AC) members on the extent to which they fulfil the oversight role vested in them by the Jordanian Corporate Governance Code (JCGC).,This study uses semi-structured interviews with 18 AC members. Therefore, the findings offer useful feedback for regulators to think more deeply about the current governance regulations. However, the interviewees’ responses indicate that the oversight role of the AC is still far from what the regulators anticipate. Also, Jordan has spent time and energy trying to strengthen corporate governance practices to boost investors’ confidence. Hence, the study injects the literature with new qualitative-based evidence from a peculiar civil law country. "The Chairperson of the Committee shall be an independent director, with adequate experience in the areas of finance and financial services," Sebi said.This study provides rich insights into ACs’ oversight processes in a setting outside the Anglo-Saxon corporate governance model where knowledge is scant on the ACs’ real function. If two-third of the total strength results into fraction, then higher number after rounding up shall be considered. On composition of the committee, Sebi said it shall have minimum three directors as members and at least two-third members of the committee shall be independent directors of AMC. The members of the audit committee will be appointed by the Board of Directors of AMC, as per Sebi. The meeting can also be called by the chairperson as and when required and Sebi has also mentioned about the quorum for meeting. The chairperson is mandated to conduct atleast four meetings in a financial year and there should not be a gap of over 120 days between two meetings. The committee shall forward their observations on internal audit report, if any, to the trustees, it added. The internal auditor has to submit its report to the audit committees of AMC and the board of AMC, Sebi said. The Audit Committee refers to the governance body that is charged with oversight of the organisations audit and control functions. European Auditing Oversight Bodies (CEAOB) and is intended to help. The regulator has laid down detailed powers and responsibilities of the committee with respect to financial reporting, audit (internal and statutory) and internal controls, regulatory compliance and other functions. The Commission de Surveillance du Secteur Financier (CSSF) processes the personal. Audit committees meet separately with external auditors to discuss matters that the committee or auditors believe should be discussed privately. As such, CPAs report directly to the audit committee, not management.
"The Audit Committee of the AMC shall be responsible for oversight of financial reporting process, audit process, company's system of internal controls, compliance to laws and regulations and other related process, with specific reference to operation of its Mutual Fund business," Sebi said in its circular. The audit committee is responsible for the appointment, compensation and oversight of the work of the auditor. Mandate of the committee is to review the financial reporting processes, the system of internal controls and the audit processes for the mutual fund operations of the AMC.īesides, it would be required to ensure that the rectifications, if any, suggested by internal and external auditors, among others, are acted upon.