Audit Committee

The Audit Committee is of the Audit Committee of the Board of Supervisors. In German and Austrian stock corporations is the supervisory body of the Supervisory Board; in Switzerland it is the Board of Directors.

The establishment of an audit committee is recommended as part of corporate governance in the German Corporate Governance Code for German stock corporations, in accordance with the Swiss Code of Best Practice and the Austrian Corporate Governance Code.

Objectives and functioning of the Audit Committee of the Board as a body - the practical design is highly dependent on the legal framework and legal form; there is a distinction between the one-tier and two-tier models - are common in the OECD Corporate Governance Principles 2004 and the Action Plan Corporate Governance of the European Commission ( COM ( 2003) 284 fin) outlined.

  • 4.1 General
  • 4.2 Germany
  • 4.3 Switzerland
  • 4.4 Austria

Main tasks

The main duties vary from country to country and especially from company to company. Basically, the Audit Committee is responsible for:

  • Monitoring the financial reporting
  • Monitoring of the risk management system ( regulated separately in financial services in general )
  • Monitoring of the internal control system (ICS ), as well as compliance

It is the interface between the board of supervisors, internal and external audit on the one hand, and the responsible for the operation of management control systems on the other.

Legal bases

Germany

The Act to Modernise Accounting Law ( Accounting Law Modernization Act - BilMoG ) of 25 May 2009, in § 324 of the German Commercial Code ( HGB) stipulates that " publicly traded corporations " under certain conditions need to set up an audit committee.

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