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Audit Committee consists of board of directors and overseeing financial reporting, implementation of internal control, policies & procedures, by which the following areas can be monitored effectively:
1. Risk management
2. Organization’s goals and targets
3. Corporate policies in lieu of law and regulation
4. Business progress, developments, hindrance & etc.
5. To review internal audit procedures, plans, and findings
6. To communicate with external auditors
The corporate governance can ensure effective delivery only when the above mentioned items will be addressed on time and monitored regularly and the audit committee makes sure implementation of effective internal control & procedure and directed on time.
The audit committee delegates power from top to bottom to get results and makes accountable to each and every department and all departments should perform their responsibilities for the betterment of organization and their self as well. No one above the law and regulation and every one well aware about the organization’s goals and targets.
The audit committee uses a vital tool such as Internal Audit to give assurances on risk management, governance and internal control systems. Properly conducted effective internal audit will help to develop effective processes and structures that will fecilitate effective and prudent management that will deliver the long-term success of the company, including higher shareholder value.
The audit committee and risk playing its role fully in respect of acts of special audit of the company and its subsidiaries, and supervise the Internal Audit Department of the company, does not issue the audit committee and risk decisions but makes recommendations to the Board of Directors, and usually be expected from the Board of Directors to take appropriate decisions and actions based on the recommendation of the audit Committee and risks. The primary task of the audit committee and the risk is to review and monitor the financial statements and internal control system of the company and the risk management system, and the issuance of the recommendation to appoint an observer the company's accounts, and monitor their effectiveness. And it is from time to time to put some specific tasks by the Commission for approval and adoption by the Board of Directors. It includes the role of the Commission specifically the following tasks:
A review of the annual financial statements and the final quarter of the company and to give advice to the Council with regard to their acceptance.
Consider the scope of the work and the reports and activities of the auditor's review and raise the visuals for his reports.
Develop appropriate to ensure the independence of the auditor and determine the policies achieve this independence based on the information provided by the auditor and the Board of Directors.
Recommendation of the Governing Council to appoint an observer the company's accounts and unplug it and determine his fees, and, if possible, conduct a tender about the nominations monitor the company's accounts, with a recommendation to the Board of Directors to choose an observer appropriate accounts, should the Board of Directors to recommend the General Assembly to Achtjarmracb proposed accounts of the audit committee and risk and determine his fees.
Consider the development of internal control systems and compliance
Consider the development of internal audit work plans and reviewing a summary of the audit reports contained, monitoring and response management with reaction.
The receipt of reports and information from management regarding its plans for monitoring and processing operations to determine the basic foundations of risk management related work and treatment.
Investigation of any subject that falls within the functions of the Committee, or any other things Governing Council should request screening for them.
Be sure to use proper management methods to manage the principal risks of the company and to reduce them.
Ensuring the availability of adequate systems of internal control to protect the company from large losses.
Periodic review of the company's matrix devolution of powers and make recommendations to improve the system if necessary.
Follow the work of Chartered Accountants, and the adoption of any work outside the scope of audit work assigned to them while they work review.
Study Notes chartered accountant on the financial statements and follow up on what was in the will.
Study of accounting policies and to express an opinion and recommendation of the Governing Council in the matter.
Overall, the audit committee and risk the right to investigate any activity that falls within the duties or any subject requested by the Board of Directors specifically. And it has a full right of access to all records and interview employees of the company (including internal audit and the auditor's management to investigate and inquire about any information. They have the right to be assisted by legal and technical advice from any third party or any advisory body other independent when necessary, to help the Commission in the performance of their tasks. They must also check in every meeting whether there was any defect regard to risk management or internal control or to comply with the regulations prescribed in the issues that have been filed to the Committee) as it must raise its views in this regard immediately to the board of Directors. He must also inform the company's management chairman of the audit committee and the risk of any defect or fraud or exceeded by the extent of seriousness.
To ensure the independence of the work of the audit committee and the risk will be for each of the Director of Internal Audit and the auditor to deal and communicate directly with the Audit Committee and risks, without any intermediary. The company is formed, according to the following rules: The members of the Audit Committee's decision of the Board of Directors, and the Board of Directors may exempt or replace the members of the Committee at any time.
The Committee shall consist of three (3) members at least including the president, which is appointed by the members at the first meeting.
President of the Board of Directors are not entitled to be among the members of the Committee.
Committee members are selected, to ensure the availability of backgrounds, skills and experience varied to take into account the existence of reasonable commercial experience and an appropriate understanding of the field of the company's work, to be one of them at least has a good financial and accounting experience
