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متابعة

Can you explain the disadvantages of audit committee?

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تم إضافة السؤال من قبل Frank Mwansa , ACCOUNTING LECTURER , FREELANCER
تاريخ النشر: 2016/02/27
irshad pakistan
من قبل irshad pakistan , internee , NISHAT Group of industry

An audit committee is a committee comprising of non-executive directors which is able to view a company’s affairs in a detached and independent way and collaborate effectively between the main board of directors and the external auditors.

Disadvantages of audit committees: An audit committees have the following disadvantages:• fear that their purpose is to catch management out• non-executive directors being overburdened with detail• a ‘two-tier’ board of directors• additional cost in terms, at least, of time involved.

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