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- Well defined Audit Committee Charter should be present and there should be an annual evaluation of performance of all items in the charter
- Audit Committee to hold one-on-one sessions with the external (statutory) auditors and internal auditors at least once a year
- Audit Committee to review financial statements and all significant transactions of subsidiary companies
- Audit Committee to formally oversee the financial reporting process and the statutory audit of annual and consolidated accounts
- Formal process to be in pace for statutory auditor to report to the Audit Committee on key matters arising from the statutory audit, in particular on significant deficiencies in internal controls in relation to the financial reporting process
- Scope and coverage of risks by internal auditors to be reviewed and approved by the Audit Committee
- Audit Committee to monitor and guard against the risk of fraud and to also review all cases of internal and external fraud related to the company
- Audit Committee to closely monitor earnings management issues, aggressive accounting policies, restructuring charges, R&D costs, subjective estimates and premature recognition of revenue
- Audit Committee to establish clear expectations with management and auditors on their qualitative information needs about internal controls – especially in higher risk areas
- All non-arms-length transactions, whether with related parties or others, to be captured and reported to the Audit Committee
- All significant transactions and arrangements entered into by subsidiary companies to be reported to the Audit Committee
- Usage of funds should be raised through public issue to be tracked and reported to the audit committee.