The study was undertaken with the aim of providing an understanding of the Audit Committees (ACs) of Singapore listed companies in relation to various regulations such as the Singapore Companies Act and the Code of Corporate Governance. The 2011 study is a follow-up from the 2009 study.
This study examines the composition of ACs, qualification of AC members, experience of AC members and extent of ACs meeting the requirements of the Code of Corporate Governance, and puts forth some discussion and suggestions on matters pertaining to ACs.
The survey found positive trends in Audit Committees such as the increasing number of financially-trained individuals in Audit Committees, decrease in individuals holding multiple chairmanships and memberships. However, there was also an increasing trend of alternate directorships, which raises a point of interest, as alternate directors are obliged to exercise independent judgment in carrying out their duties with the same efficacy and professionalism as a director.
This publication could serve as a useful reference for Boards, as well as investors, and to help them understand the trends in ACs and make informed decisions on assessing the effectiveness and composition of ACs.