In respect of Commonwealth Bank and Jb Hifi links to their a

In respect of Commonwealth Bank and Jb Hifi, links to their annual reports:

https://www.jbhifi.com.au/Documents/2017%20Annual%20Report.pdf

https://www.commbank.com.au/content/dam/commbank/about-us/shareholders/pdfs/annual-reports/annual_report_2017_14_aug_2017.pdf

In relation to corporate governance, research and justify your answer to the following questions

(A) Do the above companies have any process relating to corporate governance? Under which section of the annual report would you expect to find information on it?

(B) Do the companies have an audit committee and does it have the correct composition?

(C) In your team’s opinion, are audit committees of benefit to the auditor, the company, the auditing profession and/or society as a whole?

Solution

A) Yes, Annual report for the both the companies suggest that they have process relating to corporate governance. Both the companies have asserted in the annual report that their business is conducted with high standards of corporate governance.

For JB Hi-fi company, the information for the same is available under section \"Governance, environmental and social statements.\"

For Commonwealth bank, the said information is available under section \"Corporate Governance.\"

B) Yes, both the companies have an audit committee and they have correct composition of the audit committee.

As per the standards, the composition of audit committee should be as under:-

1) at least 3 members should be there.

2) All members should be non-executive directors.

3) all members should be independent.

4) At least one member should be a financial expert.

C) Audit committee are beneficial to the auditor as he has to report everything to one central committee. They are beneficial to the company so that only one committee is responsible for hiring, remunerating and overseeing the work of the auditors. They are beneficial to the auditing profession so that the auditors can perform their work as per applicable standards.