Treasury Internal Audit Framework Revised ... - National Treasury

Audit Committee (AC)
• Provide advice to the AO on action taken
on significant issues raised in external
audit reports; and
• Review external audit costs.
2.5 Composition and Membership
2.5.1 Composition
Section 77 of the PFMA and Section 166(4) of
the MFMA state that an AC must consist of at
least three persons of whom the majority may
not be in the employ of the department or
public entity or municipality. The majority of
members should be financially literate and
qualified. The appointment must be done by
the AO in consultation with the EA. In relation
to municipalities appointment must be done by
Council. The appointed members should enter
into a contract with the organisation. The size
of the AC should be influenced by the nature
and extent of its responsibilities as covered in
the charter.
2.5.2 Qualities
In determining the composition of the AC, the
AO should look for the following qualities:
• The ability to conduct responsibilities
in the context of the organisation’s
17 Internal Audit Framework