10 April 2017
Board effectiveness for sports bodies and terms of reference for the audit committee
ICSA has launched a new guidance note aimed at those with responsibility for the governance of sports bodies, whatever their size. It supports and augments the recent Code for Sports Governance and considers topics such as governance and management, the board’s role and composition, decision-making and effective meetings.
This new guidance note reflects the revised requirements of the UK Corporate Governance Code (and the updated FRC Guidance on Audit Committees). It also includes references to the FRC Revised Ethical Standard. The revisions to these documents implemented the EU Statutory Audit Directive and Regulation.
The new guidance note reflects the additional responsibilities for audit committees, including oversight of the auditor’s appointment and audit tendering, and enhanced reporting requirements. The audit committee’s responsibilities now include oversight of the relationship with the external auditor, as well as the relationship between internal and external audit. In addition to assessing the effectiveness of the external audit process, the audit committee also has responsibility for the external auditor’s remuneration, including fees for both audit and non-audit services.