|The AC should have explicit authority to investigate any matter within its terms of reference, full access to and co-operation by Management and full discretion to invite any director or executive officer to attend its meetings, and reasonable resources to enable it to discharge its functions properly.|
This Guideline describes the authority and power of the AC.
In order to perform its duties, the AC should have the following specific authorities and powers:
- The authority to investigate any matters within its scope.
- Unrestricted access to, and co-operation from, management.
- The authority to invite any director or member of management to attend its meetings.
- Access to adequate resources to discharge its duties.
Internal controls, risk management and financial reporting cuts across all levels and functions of a company. For the AC to carry out its duties effectively, it should have full and unrestricted access to, and co-operation from, all management staff. Any hindrance by the Board or management in this respect may limit the proper functioning of the AC.
As with all committees, adequate resources should be allocated to the AC for it to perform its duties.
B. SGX Disclosure Guide
C. Related Rules and Regulations
- Section 201B(8) of the Companies Act: Audit Committees.
D. CG Guides
- AC Guide 1.2: Structure and Authority [AC Composition].
- AC Guide 1.3: Terms of Reference [AC Composition].
- AC Guide Appendix 1C: Sample AC Terms of Reference [AC Composition].
- AC Guide Appendix 1D: Sample ARC Terms of Reference [AC Composition].
- AC Guide Case Study 1B-3: Insufficient Number of AC Members [AC Composition].
E. Related Articles
- “Raising the game: The AC-internal audit relationship” by David Toh. (47KB)
- “Eight habits of highly effective audit committees” by John F. Morrow and Joan Pastor. (2.3MB)