Audit Committee Self-Assessment
The audit committee should regularly assess its own effectiveness and the adequacy of its terms of reference, work plans, and forums of discussion and communication. This ACI guidance note is a suggested framework for an audit committee’s annual review of its own effectiveness and the adequacy of its terms of reference and work plans.

Evaluation of external auditors
A checklist framework for an audit committee to carry out a formal review of the effectiveness and efficiency of their external auditors. Such a review provides the audit committee with a disciplined approach to keeping the auditors' performance under review. It will also help to ensure that the auditors remain alert to the company's needs and to maintaining an appropriate relationship with the executive management, the audit committee and the board as a whole.

Evaluation of internal auditors
A similar checklist framework for an audit committee to evaluate their internal audit function. Such a review should be based on the audit committee's own experience as well as management and the external auditors. In addition, the head of internal audit should provide a self-assessment. This process may identify other issues relating to the audit committee's own performance, or the performance of management or the external auditors.

Five Guiding Principles for Audit Committee
Oversight practices that work for one audit committee may not work for another; yet, certain “guiding principles” underline the effectiveness of every audit committee - even as specific oversight practices evolve to address changing risks, regulatory requirements, and corporate governance needs. In this ACI publication - Five Guiding Principles for Audit Committees - we consider five principles that help ensure oversight practices are applied effectively - that is, by the right people with the right information, processes, and perspectives.


Audit Committee Terms of Referrence
In essence, the audit committee’s terms of reference should define the scope of the committee’s oversight responsibilities and how these are to be discharged. The role of the audit committee is for the board to decide, subject to the Stock Exchange of Thailand’s requirements. Every audit committee should establish terms of reference that not only meets the minimum requirements but also is tailored to its specific needs and circumstances. This example is intended to assist an audit committee in creating or updating its terms of reference.

Example of internal audit plan
The audit committee should be involved in developing and approving internal audit’s mandate, goals and mission, to be certain of its proper role in the oversight function. A specimen internal audit plan is included in this ACI guidance note.

Whistle-blowing procedures
The SET’s corporate governance principles make clear that the company must have an appropriate and effective mechanism for stakeholders to raise any concerns about financial reporting or other matters. Around the world, this is commonly referred to as “whistle-blowing”. Part of good whistle-blowing mechanism is to have a clear and concise policy on the matter that is openly available to all stakeholders. This guidance note contains an example that can be tailored to suit your own company’s specific circumstances.

Employment of Former Employees of the Auditor
The audit committee is responsible for overseeing the external and internal audit process. Several key elements exist in this task, including the need to agree on a policy for the employment of former employees of the external auditor, taking into account any relevant independence guidelines, governing the accounting profession. This ACI guidance note provides an example of such a policy.

Example Risk Summary and Register
Management is responsible for designing and implementing an effective system of internal control. The audit committee must determine that management has implemented policies to identify financial and other risks as well as adequate controls. It is important that the audit committee gains meaningful insight into the key sources of risk and how such risks are managed. This ACI guidance note is an example risk summary and register, designed to give audit committee members a quick insight into the key risks and the effectiveness of the controls in place.

Example questions - identifying and assessing risks
Boards may take several different approaches in identifying and assessing risks. The board may assume that responsibility itself or it may assign selected oversight responsibilities to one of more board committees. The audit committee needs to discuss financial risk management with senior management and the internal and external auditors. This guidance note contains high level questions that the board or its committees may wish to consider in framing their discussions with management. The list is not exhaustive.

Risks Warning signals
Members of the audit committee should identify some financial risk indicators because of their position as directors. Every organisation is unique, and each board should be alert to its own risk warning signals. This ACI guidance note provides a starting point for this kind of thinking. The note illustrates a key principle that directors should be risk-aware as they review reporting, operating and compliance issues.