Effective relationship between the audit committee, the internal audit and the external audit
Authors: Belgian Association of Listed Companies, Belgian Institute of Registered Auditors, Institute of Internal Auditors BelgiumThe guidelines were drawn up in order to assist the members of the audit committee of listed companies in the application of the legal provisions and the recommendations…
Law on the organization of the profession and the public supervision of auditors
This law aims at the further implementation of the audit reform consisting of (i) the European Audit Regulation 537/2014/EU and (ii) the European Audit Directive 2014/56/EU amending the current Audit Directive 2006/43/EC.
The main themes of the audit reform are the following: external audit firm rotation and the prohibition and restrictions on non-audit services, new public supervision of auditors, extensive reporting of the auditor and the strengthening of the Audit Committee.
Law on the establishment of an audit committee
Since 8 January 2009, listed companies are legally obliged to establish an audit committee within their statutory management body. The law transposes the provisions of the European Directive 2006/46/EC.
The audit committee has to be composed of only non-executive members of which at least one member must be independent. This independent member of the audit committee has to have the necessary expertise in the field of accounting and audit and has to fulfill the independence criteria the law sets out.
These independence criteria will also be applicable to independent directors who are member of the committee entrusted with the assessment of intra-group transactions.