(ii) The effectiveness of audit committees could be improved in the following ways.

　　Appointment requirements

　　Appointments could be recommended by the annual general meeting. Alternatively certain stakeholders, for example employees could have the right to appoint a member. These measures might improve the independence of committee members. The term of office of committee members could also be limited to ensure the committee retained a

　　fresh perspective.

　　When nominating potential members, the selection process could be biased towards recruiting members with financial accounting experience or experience of large control systems. Members who have accountancy experience will be able to question the judgements management make when preparing accountancy information. 转自:考试网 - [Examw.Com

　　Expansion of responsibilities

　　There are various ways in which the committee’s remit might be expanded. They could have responsibility for reviewing compliance with laws and regulations such as environmental legislation or ethical codes. Certain transactions could also be referred automatically to them for review.

　　Internal audit

　　As a major function of many audit committees is to oversee the role of internal audit, it follows that a more effective internal audit function will lead to more effective operation of the qudit committee by improving the quality of information that the audit committee review.