Summary
The aim of the report is to clarify the role and responsibilities of audit committees and to develop the Combined Code guidance. The report includes specimen terms of reference for an audit committee and an outline of the section to be included in a company’s annual report on the activities of the audit committee. Guidance from the Smith report is now contained in the FRC Guidance on Audit Committees and the Combined Code has now been superseded by the UK Corporate Governance Code in respect of accounting periods beginning on or after 29 June 2010.