An audit committee is an advisory committee established by a Council to:
(i) focus on issues relevant to the integrity of the Council’s financial reporting
(ii) monitor risk management systems, internal control framework, compliance and internal audit activities
(iii) liaise between external auditors, internal auditors and management.
Victoria
Section 139 of the Victorian Local Government Act 1989 states that:
(1) A Council must establish an audit committee.
(2) An audit committee is an advisory committee.
(3) An audit committee must be constituted in the prescribed manner.
(4) An audit committee has the functions and responsibilities prescribed for the purposes of this section.
(4A) Sections 76D and 79 apply to members of an audit committee as if they were members of a special committee of the Council.
(5) The Minister may make guidelines for the purposes of this section.
(6) Guidelines made under subsection (5) must be published in the Government Gazette.
(7) A Council may pay a fee to a member of an audit committee who is not a Councillor or member of Council staff.