PART 6

OVERVIEW AND SCRUTINY
CHAPTER 2

AUDIT COMMITTEES

Local authorities to appoint audit committees
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1
A local authority must appoint a committee (an “audit committee”) to—
a
review and scrutinise the authority’s financial affairs,
b
make reports and recommendations in relation to the authority’s financial affairs,
c
review and assess the risk management, internal control and corporate governance arrangements of the authority,
d
make reports and recommendations to the authority on the adequacy and effectiveness of those arrangements,
e
oversee the authority’s internal and external audit arrangements, and
f
review the financial statements prepared by the authority.
2
A local authority may confer on its audit committee such other functions as the authority considers suitable to be exercised by such a committee.
3
It is for an audit committee to determine how to exercise its functions.