Regarding the Section 167 requirement for a large company exceeding the relevant threshholds to establish an audit committee, what reasons are acceptable for not establishing a committee?

The company, while meeting the requirements, has not established an audit committee under Section 167 Companies Act 2014. The reasons for this decision not to establish an audit committee are based on the fact that the company are either directly involved or are appropriately informed by other shareholders who are involved in the governance of the group through their directorships, executive positions and their participation and control which extends to all elements of the group’s activities. It is the opinion of the board of directors that they fulfil the responsibilities of the audit committee which include:

• – the monitoring of the financial reporting process;
• – the monitoring of the effectiveness of the group’s systems of internal control and risk management;
• – the monitoring of the statutory audit of the group’s statutory financial statements; and
• – the review of monitoring of the Independence of the statutory auditor and in particular the provision of additional services to the group.