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    Audit Charter

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    sharikahmad12

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    © All Rights Reserved
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    Audit Charter

    Uploaded by

    sharikahmad12
    10 views3 pages

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    © © All Rights Reserved

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    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    10 views3 pages

    Audit Charter

    Uploaded by

    sharikahmad12

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    You are on page 1of 3

    An audit charter for a private limited company outlines the purpose, authority, and responsibilities of

    the audit committee within the organization. Here's a sample audit charter template for a private
    limited company:

    ---

    **Audit Charter**

    **[Company Name]**

    **I. Purpose**

    The purpose of the audit committee (the "Committee") of [Company Name] (the "Company") is to assist
    the Board of Directors (the "Board") in fulfilling its oversight responsibilities by overseeing the financial
    reporting process, the audit process, the system of internal controls, and compliance with legal and
    regulatory requirements.

    **II. Authority**

    1. The Committee shall have the authority to select, evaluate, and, where appropriate, replace the
    independent auditor, subject to shareholder ratification.

    2. The Committee shall have the authority to approve all audit engagement fees and terms.

    3. The Committee shall have the authority to pre-approve all audit and non-audit services provided by
    the independent auditor.

    4. The Committee shall have the authority to conduct or authorize investigations into any matters within
    its scope of responsibility.

    **III. Responsibilities**
    1. **Financial Reporting Process**

    - Review and discuss with management and the independent auditor the Company's annual audited
    financial statements and any related reports or disclosures.

    - Review and discuss with management and the independent auditor the Company's quarterly financial
    statements and any related reports or disclosures.

    2. **Audit Process**

    - Review and evaluate the independence and performance of the independent auditor, including the
    lead partner.

    - Review and discuss with the independent auditor the scope and results of the audit, including any
    significant audit findings or issues.

    - Review and discuss with management and the independent auditor the adequacy and effectiveness
    of the Company's internal controls over financial reporting.

    3. **Internal Controls**

    - Review and discuss with management the Company's policies and procedures regarding risk
    assessment and risk management.

    - Review and discuss with management any significant deficiencies or weaknesses in the Company's
    internal controls over financial reporting and management's plans to address them.

    4. **Compliance**

    - Review and discuss with management and the independent auditor any legal or regulatory matters
    that could have a material impact on the Company's financial statements or compliance obligations.

    - Review and approve the Company's Code of Conduct and Ethics, and monitor compliance with its
    provisions.

    **IV. Reporting**
    The Committee shall report regularly to the Board on its activities, findings, and recommendations, and
    shall make such recommendations to the Board as it deems appropriate.

    **V. Composition and Meetings**

    The Committee shall be composed of [number] members of the Board, each of whom shall be
    independent directors as defined by applicable law and regulations. The Committee shall meet at least
    [number] times per year, or more frequently as circumstances require.

    **VI. Review and Amendment**

    The Committee shall review and reassess the adequacy of this Charter annually and recommend any
    proposed changes to the Board for approval.

    **VII. Adoption**

    This Charter was adopted by the Board of Directors of [Company Name] on [Date].

    ---

    This is a basic template and should be customized to fit the specific needs and circumstances of your
    private limited company. Additionally, it's important to consult legal counsel or other appropriate
    advisors when drafting or amending an audit charter to ensure compliance with all relevant laws,
    regulations, and best practices.

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