COMMITTEE

What is audit committee

y

The Audit Committee is an independent body answerable directly to the Board of Governors and responsible for verifying that the operations of the Bank or company have been conducted and its books are kept in a proper manner.

What do they do
y y y y y y

Overseeing the financial reporting and disclosure process. Monitoring choice of accounting policies and principle. Oversight of regulatory compliance. Monitoring the internal control process. Overseeing the performance of the internal audit function. Discussing risk management policies and practices with management

Asking the Right Questions

Audit committee members must maintain an in-depth understanding of internal audit best practices and how internal audit is functioning.

Audit Committee Communications Framework: Objectives

Promote effective and candid communications Enhance timely reporting, dialogue and sharing views x Service approach x Risk and Control x Financial Reporting x Governance

Audit Committee Communications Plan

Getting started Understanding the audit Staying informed Resolution and completion

[Indicate timing]

[Indicate timing]
Our audit plan

[Indicate timing]

[Indicate timing]

Service approach

PwC principles and practices Communications plan

Engagement letter and independence confirmation

Reporting timetable Business unit scope Engagement team Other deliverables

Risk analysis

Risk and control

Risk condition alert

Perspectives on fraud risk Other regulatory requirements plan

Internal control and business issues report

Update on accounting/audit issues and risk analysis

Reporting requirements Quarterly review Best practices in corporate reporting Internal control deficiencies Accounting policies Management judgments Quality of earnings Independence Transparency Audit opinion

Financial reporting

Quarterly review

Quarterly review

Transparency of corporate reporting

Governance

Corporate governance: roles and practices

Assessing our performance and yours

Ongoing assessment of needs & expectations

The PwC Audit

Global approach adaptable to all clients Designed for continuous improvement Performance metrics will play a larger role in future audits Audit quality is at the core of our long term business objectives.

Charting the Course

An audit committee charter is a blueprint for its operation and should address:
Processes Procedures Responsibilities

Audit Committee Requirements

The Audit Committee must consist of at least 2 members. y The 8th Directive requires that at least one member of the Audit Committee must be independent and must be qualified in accounting or auditing. y A Director qualifies for appointment to the committee if he or she: - Is or has not been an employee of the company or subsidiary in the last 3 years - Is not the chairperson of the Board of Directors.
y

Deficiencies in the operation of the audit committee

Oversight of financial reporting. y Oversight of the external auditor. y Oversight of risk management. y Oversight in internal audit. y Oversight of other compliance activities.
y

Whom should appoint audit committee ???

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The requirement to establish an audit committee applies to all public limited companies, qualifying large private companies, relevant undertakings and public interest entities.

THANK YOU!!!...