Discuss the questions based on Board Committee at KPMG UK.
1. Description of the audit and risk committee
The KPMG UK has some members in their audit and risk committee. They are Nicola Quayle, Stephen Oxley along with Melanie Richards and Richard Heis (KPMG International. 2017). This particular committee mainly looks towards the integrity of the financial reporting system along with the risk management and the internal controls (O'Leary, Daniel, 2016). In the financial reporting part, the organization takes the different accounting policies and practices into their account. Along with that, the financial reporting part also analyzes the different methods in order to manage the account for the different transactions. On the other hand, the statutory audit also recommends to the board regarding the appointment along with the reappointment of the statutory auditors. Along with that, the risk management part of this board, mainly reviews the professional risk-management business plan.
This particular committee should reach to their decisions by having the simple majority of the voting on the issue. If the number of votes for and against over a certain proposal, then this committee should provide a casting vote (KPMG International. 2017). Along with that, any resolution that is evidenced in writing or by the different electronic means needs to be very much effective and valid. Then it should get passed at the meeting regarding the proposed resolution that has been provided in advance to each of the member of the Audit and Risk Committee.
2. Duties of the audit and risk committee
The Audit and Risk committee mainly reviews the annual financial statements of the LLP thoroughly (Jones et al. 2015). Along with that, the committee also monitors the integrity of the different financial reporting system along with the different internal controls. Moreover, this particular committee is also responsible for the internal audit function along with the enterprise risk factors. Therefore, it can be said that the main and most important duty of this particular board committee is to make sure that the different audit and risk related aspects are managed properly. The risk factor mainly includes the risks in terms of ethics and independence. In addition to that, this committee also needs to assess the proper effectiveness of the different risk factors along with the different programs that are related to the operations of the LLP.
The audit and risk committee have certain amount of benefits. One of them is the time leveraging. The financial reporting is considered as the most important factor of the organization. As the designated financial experts lead the audit committee, therefore it enhances the advantage of the time. In addition to that, it also enhances the internal control of the organization. The proper internal control easily lead the organization regarding all the processes along with that it also reduces the amount of wastage of resource.
3. Description of Nomination and remuneration committee
This particular committee also has three members. They are David Sayer, Maggie Brereton along with Ian Starkey (KPMG International. 2017). The primary role of this committee is to create a proper framework in order to nominate the main individuals that include the UK Board and Executive management team members along with the different roles of the leadership. Moreover, this particular board committee also reviews the different processes for the allocation of profit along with the proper distribution of the UK partners (Hughes et al. 2013). In addition to that, this committee makes certain recommendations for the remuneration of the members of the Executive Committee.
The general policies of the organization are mainly related to the stock option plans that include granting along with the proper allocation of the time and frequency of the allocation. It also includes different stock options plan that consists the different proposed beneficiaries. In addition to that, once in a year, the committee dedicates an item regarding its agenda in order to generate a debate that concerns over their functioning. Along with that, the committee also decides the fact that whether it would define the proposal to the CEO ort the compensation and the benefits of all the members to the executive committee (KPMG International. 2017). The committee also generates and recommends to the Board regarding the approval for the remuneration of the board committees.
4. Duties of the Nomination and remuneration committee
This particular committee needs to make certain amount of recommendations to the Board regarding the different policies of the organization along with the structures for all the senior management member’s remuneration and the creation of a transparent process in order to develop the remuneration policy for the members. Along with that, this committee also reviews and approves the proposals regarding the management’s remuneration with the proper association of the goals and the objectives of the Board’s corporate body (Hughes et al. 2013). In addition to that, they also provide a proper set of recommendations to the board members regarding their remuneration packages that include the pension plans and the compensation payments.