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A charter is a document issued outlining the conditions of how a corporate body is organized. While a terms of reference is a guide or memo of understanding.

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What is the difference between audit committee charter and audit committee terms of reference?

The audit committee charter is a formal document that outlines the purpose, authority, and responsibilities of the audit committee, including its structure and how it operates. In contrast, the terms of reference provide detailed guidelines on the specific roles and duties assigned to the committee members, including reporting requirements and performance expectations. Essentially, the charter serves as a high-level framework, while the terms of reference delve into operational specifics. Both documents are essential for ensuring clarity and accountability within the audit committee's functions.


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