Corporate Governance Update of the Technical Guide on Audit Committees Practical analysis
On 1 July 2024, the CNMV published an update to its 2017 technical guidance on audit committees of public interest entities (the "Guide").
The Guide is updated to include all recommendations for action, internal regulations to be approved and processes to be implemented in relation to the obligations of the audit committees (ACs) in the area of supervision of non-financial information and sustainability, and the involvement of the verifier of sustainability information.
This has been done taking into account the provisions of Directive (EU) 2022/2464 on sustainability reporting by companies (CSRD), which is already in force, and the draft bill regulating the corporate reporting framework on environmental, social and governance issues.
In general, the functions of the CA in terms of dialogue, dialogue, supervision, guarantee of independence, regular meetings, control of remuneration, etc. that applied in relation to the external auditor are extended in equivalent terms to the verifier of sustainability information.
Other additional functions are also included, such as reporting on related-party transactions of listed companies.
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