Most Read Contributor in Luxembourg, February 2017
How have the roles and responsibilities of audit committees
("ACs") changed in the wake of new regulation that has
recently become effective? We've put together a 6-part series
about updates and challenges stemming from the law of 23 July 2016
on the audit profession and Regulation (EU) N° 537/2014.
Step 2 – What are the roles and responsibilities
of the AC?
Step 3 – How should the AC be involved in the tender
Step 4 – What is the specific role of the AC in terms of
Step 5 – What kind of relationship should the AC maintain
with the external auditor?
Step 6 – What should the additional report of the external
auditor to the AC include?
In this article, we focus on step 2.
What are the roles and responsibilities of the AC?
ACs are required to manage different aspects of the entities, as
well as their relationship with the statutory auditor. This
informing the entity's management
about the outcome of the audit and explaining the AC's role in
the audit process
monitoring the financial reporting
process of the entity and submitting recommendations or proposals
to ensure its integrity
monitoring the effectiveness of the
internal quality control and risk management systems of the entity
and, where applicable, its internal audit, regarding the financial
reporting of the entity
monitoring the audit performance
monitoring the auditor's
being responsible for the procedure
for selecting the statutory auditor
Most of the requirements for ACs set out in the new legislation
are already being performed today and represent the 'best
practice'. However, requirements for ACs are now being
enshrined in law meaning that companies that have previously
applied some but not all areas will now need to take steps to
The Commission de Surveillance du Secteur Financier (CSSF) is
competent in its assessment of the performance of ACs. The new
legislation does not set the scope of this assessment of the AC,
but reference may be made to the duties of the AC as set out
KPMG supports strong, independent ACs and believes that ACs
should be actively involved in assessing audit quality and auditor
independence, including approving any non-audit services to be
provided by the statutory auditor.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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As the banking industry continues to be shaped by technological and regulatory forces, we’ve gathered our European Central Bank (ECB) experts to hold a conference about this changing landscape. KPMG’s ECB desk from Frankfurt will join our Luxembourg banking partners to unpack the latest news from the ECB, including regulations that will affect the future of banking.
We would be very pleased if you could attend this event, which will be held at our Luxembourg headquarters in Kirchberg on 30 March. The talk will begin at 5:00pm and last until 6:00pm, at which point the evening will be turned over to a networking session with drinks.
Please let us know if you are able to attend by using the registration button above (by 27 March, if possible).
We look forward to seeing you there!
Here in Luxembourg, LPEA are holding an event which will offer new initiatives by bringing General Partners (GPs) and Limited Partners (LPs) together to examine and speak on the industry from the “360” perspective, leaving no stone unturned. We are a sponsor of the event, as well as having a speaker present. David Capocci, Partner and Head of Alternative Investments will be offering his own insight on the industry nowadays.
Many Free Zone Companies incorporated in DMCC, DWC and JAFZA are leaving themselves exposed to potential fines and the non-renewal of their trading licence for failure to comply with one particular regulatory requirement.
With European governments needing to increase their tax collection, the Organisation for Economic Co-operation and development and other organisations are looking to standardise the reporting and filing of annual financial statements for companies across the world.
As your business reflects on both the changing shape of the Solvency II timetable and the eventual move to a new IFRS standard for insurance contracts, how can a durable platform for regulatory and financial reporting in the future?
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