According years, with the possibility of extending


to the UK Corporate Governance Code an audit committee at AStunIT PLC, should
consist of at least three non – executive directors, wherein one of them should
have appropriate financial experience and qualifications from major accountancy
bodies’ e.g. ICAEW. The auditing committee should be appointed by the board and
should be approved by the nomination committee. Appointments should last 3
years, with the possibility of extending this period to another 3 years.  The auditing committee should not be involved
directly in any operational management activities” (Council,


role of the auditing committee at AstunIT should consist of:


“Conducting regular
accuracy checks of financial statements and integrity of data supplied as well
as monitoring any official announcement to the report, hence improve reliability
of the financial statement report.Formal assessment
of internal auditor’s neutrality, resulting in more effective communication
between executives, managing group and external auditors.Improvement and implementation
of non – audit service procedures.Proposals to the
board of Directors in regards to the nomination, re – nomination or withdrawal
of the external auditor. Assessing the
internal audit performance likewise inside control and risk management system,
as a consequence information reported by internal audit strengthens their credibility and increases value to internal control
recommendation.Rise discussions
and take into consideration any further concerns in regards to activities of
directors and internal control, furthermore create the reporting network for
any irregularities, hence preventing from wrongful or criminal financial
deception” (ICAEW, n.d.).  


enhance the productiveness of an audit committee, there should primarily exist
a position description for the audit committee chair, which should consist of
foremost principals and regulatory requirements. Without an effectual chair, an
audit committee’s activity is more likely to fail” (Leblanc,


induction training should be provided for all new members of the auditing

audit committee members should have a deeper understanding of a management role
and which factors have an impact on their decisions, which can lead to
financial statement manipulations, hence they should receive regular report
from managers in regards to system efficiency to evaluate and control business
financial risk. Additionally they should understand an approximate calculation
or judgment on the value.


audit committee should hold meetings on a regular basis to discuss current
situations and issues arising within an organisation. In addition, they should
organise, at least one a year, meeting with external and internal auditors
without presence of members of the managerial group” (Assurance,


auditor of AStunIT plc is legally responsible for a civil as well as criminal a
breach of the law. Additionally, criminal law is related to an organization and
e.g. government”. While civil law applies to disagreement between individuals
and a company” (TV, n.d.).


auditor’s responsibilities are regulated by the Company Act 2006, in particular
section 495 is concerned about an auditor’s report of a company’s yearly
accounts. If the auditor purposely provides misleading, false and untrue
information, then he/she is subject to a penalty and can be prosecuted based on
criminal law” (, 2006). “Furthermore, civil
law consists of two parts: contract and tort law, which determine principals
for an auditor’s liability to clients as well as third parties. Under contract
law, shareholders can look for breaching of contract obligations by the
auditor, which are included in engagement letter” (TV, n.d.).