Reference no: EM133101090

Question - The full adoption of IFRS by Malaysia on 1 January 2012 through the issuance of MFRS was a necessary milestone in making Malaysia an attractive investment destination. By adopting MFRS, companies in Malaysia can now join companies in over 120 countries who prepare financial statements under an IFRS Framework. As companies finalise their 2012 financial statements, it is important that the Audit Committees of Publically Accountable Entities reflect on what the adoption of the IFRS Framework means going forward.

As such, for many years the financial and accounting community has recognized the importance of the use of audit committees and has endorsed their information. By now the use of audit committees is mandatory for listed companies. External auditors have become increasingly involved with audit committees and consequently have become familiar with their nature and function.

Required -

a. Briefly explain the definition of Audit Committee.

b. State 5 reasons why audit committees have been formed and are currently in operation.

c. List and explain 5 functions of an audit committee.