The Audit and Risk Committee checklist
Audit and Risk Committees help organisations function according to good governance, accounting, auditing and risk management standards.
The audit committee should regularly assess its own effectiveness and the adequacy of its terms of reference, work plans, forums of discussion and communication. Regular assessment can identify areas where the committee and its processes could be more effective, or may highlight skills or knowledge gaps in the committee.
Audit and risk committee responsibilities
- Reviewing the establishment and maintenance of an effective system of integrated governance, risk management and internal control.
- That risk is mitigated and monitored to an appropriate level to ensure achievement of objectives is not materially impacted.
- Ensuring appropriate assurance is obtained both from internal and external sources.
- Supporting the review and agreement of the Annual Governance, Risk and Control statement in the annual financial statements.
- Oversight of internal audit and external audit.
- Escalating necessary issues to the Board of Trustees.
We have created a full checklist that will allow your Audit and Risk Committee to complete an in-depth self-assessment, and identify any areas requiring improvement. You will need to 'duplicate' the form in order to use it and deploy it within your charity.
Why is an effectiveness assessment important?
An assessment allows the Audit and Risk Committee members to consider if they are performing effectively in their responsibilities. It can provide a moment to reflect and consider if they have access to all the necessary information, roles, skills and experience to support their intentions. It also shows commitment to continuous improvement within the committee, by management and by members.
Who should complete the assessment?
We recommend that all members of the committee complete the assessment, alongside key senior management that regularly report into the Audit and Risk Committee, for example the Finance Director. Additionally, sharing with third party providers including internal audit and external audit can provide for a rounded picture of effectiveness.
Audit and risk committee effectiveness assessment
The Audit and Risk Committee checklist is based on charity best practice, Charity Governance Code and on feedback from staff and Audit and Risk Committees; and allows for a self-assessment which should be performed. You can use this checklist to conduct a basic assessment of your Audit and Risk Committee. You will need to 'duplicate' the form in order to use it and deploy it within your charity. We can also help committees by facilitating a workshop to assess performance, or by performing wider governance assessments.