Listed companies are required to establish audit committees by approximately the middle of December 2009.
The change will require the supervisory board of every listed company to appoint an audit committee with at least three members one of whom is both independent and qualified in accounting and finance. However, supervisory boards with only five members (the legal minimum) are allowed to perform the audit committee tasks themselves.
Listed companies that have yet to fix the agenda for their ordinary general meetings should, where necessary, consider appointing a new member of the supervisory board who satisfies these requirements. This may also involve a change to their articles of association or internal regulations.
Audit committees are not currently compulsory but are recommended by the Code of Best Practice for companies listed on the Warsaw Stock Exchange.
The work of an audit committee usually includes: the selection of auditors and accounting policies as well as the oversight of financial reporting, auditor independence, regulatory compliance, risk management, internal audits and internal controls.
Law: Act on Certified Auditors and their Professional Associations, Audit Companies and Public Supervision
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The original publication date for this article was 13/05/2009.