The Federation of European Accountants
(Fédération des Experts Comptables Européens – FEE) has issued a
discussion paper on examining the role of audit committees
throughout the European Union.

The paper, Functioning of Audit
, contains measures that aim to enhance the role of
the audit committee’s in accordance to the European Commission’s
guidance on corporate governance.

The FEE said that audit committees are a
relatively new thing in some EU countries and therefore the
functioning of audit committees in general can be improved.

“Improvements relate in particular to
clarification of the competences and the responsibilities of the
audit committee and to the reporting to and from the audit
committee,” the FEE said.

“These improvements would be beneficial to
companies, having in mind that the main purpose of audit committees
is to ensure the quality of financial reporting, overall internal
control and risk management.”

Deadline for comment on the discussion paper
is 28 September.