How the audit committee organises its activity
Author:
university professor, PhD. Tatiana DĂNESCU
JEL:
DOI:
Keywords:
Corporate governance, monitoring, risk management committee, International Standards on auditing, assessment, material risks, specific risks
Abstract:
The article presents in a short manner how the board of directors of a company, more precisely of a group of companies in tourism, understood or should understand some important provisions of the Commercial Law no. 31/1991, respectively the Law no. 441/2006. The topics of the article resumes to the establishment and functioning the boards of the company/group. from the multitude of the issues contained in the new company laws, the authors stopped to a segment from those referring to the corporate governance, and from here to the Risk management committee, and to the internal audit committee, the first being one of the auxiliary committees with executive competencies, and the second one with non/executive competencies. \r\n\r\nThe audit committee organizing and functioning in the commercial companies is a topics which is much debated currently in the specialized mass media in Europe, both the second wave countries, but especially in the third wave countries joining to the European Union. The comments refer mostly to the absolute need to abandon the concepts of the state ownership monopoly on the one hand and on the other hand to the requirement to understand and valorify the private ownership concept.\r\n\r\nIn the free market economy, where the private owership is predominant, the internal audit, an unknown instrument in the state economy is often regarded with skepticism and some times with reserves and is often considered to be parallel with the financial statements audit being considered useless. This interpretation is normal as some considers. To replace in so short time a mentality which has been cultivated for decades it is not easy. \r\n\r\nThe authors of the article, Romanian financial auditors and at the same time members of the Institute of Internal Auditors (I.I.A.) from the United States of America, with in depth studies in the area, discuss the more sensitive areas and those which are completely unknown from the laws provisions and try to be persuasive. They hope that at least a partial success means that they are on the good way.\r\n