Friday, May 8, 2015

Why ineffective audit committee lead to ineffective board of directors?

The most importance reason that lead to strong board of directors is they get all of the information on time and accurately.

That mean the system of flowing the information from operation to BOD need to be effective and strong. Good audit committee run this job effectively.

If the company have poor audit committee, the internal control of the company will be poor, financial information that flow to BOD might be incorrect or not on time.

Poor audit committee also leave internal and external auditor run carelessly. The independence of this two function might be breached. 

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