The guide is intended to assist audit committee members, and particularly chairmen, to be effective in their roles, meeting the expectations of investors and complying with regulatory best practice for small and mid-size quoted companies.

Since its last publication in 2009, the guide has been revised and updated to take into account the increased focus on the role of the audit committee in corporate governance, as well as risk management and audit quality.

The key changes include greater emphasis on the audit committee’s role in enhancing trust in a company among shareholders, and more detailed explanations of the roles and responsibilities of people involved in the work of the audit committee, placing greater emphasis on the role of its chairman.

The guide has been updated to reflect the latest regulatory changes and integrates aspects of the QCA governance code which was published last year.

There is an expanded section on the internal focus of the audit committee and emphasising the importance of risk management, while the guide’s content has been reordered to reflect audit committee’s annual cycle of work, including the production of annual reports and accounts and liaising with external auditors.

Colin Jones, head of London audit at UHY Hacker Young LLP and deputy chairman of the QCA corporate governance expert group, said: ‘It is important for companies to ensure that their audit committees are inspiring the highest standards of integrity, objectivity and judgement throughout an organisation.

'The QCA audit committee guide sets out best practice to help audit committees navigate their tasks, focusing not only on the annual corporate reporting cycle but also the vital role the committee plays in providing independent oversight of a company.’