CTRL 3.3.12 Audit committee

(1) The audit committee is responsible for:
(a) adopting and overseeing a written policy on internal audit and financial reporting;
(b) reviewing the results of the audit process with management and external auditors;
(c) overseeing the firm’s internal auditors and interacting with the external auditors;
(d) making decisions (or recommendations to the board or shareholders) about the appointment, remuneration and dismissal of external auditors;
(e) reviewing and approving the scope and frequency of audit;
(f) receiving significant audit reports and ensuring that senior management promptly takes any corrective action that is necessary to address control weaknesses, non-compliance with policies, laws and regulations, and other problems;
(g) overseeing the establishment of accounting policies and practices;
(h) reviewing third-party opinions on the design and effectiveness of the overall internal controls and assurance framework; and
(i) if the firm is an Islamic financial institution:
(i) reviewing the effectiveness of its systems and controls for monitoring compliance with Shari’a (including reviewing the reports of internal Shari’a reviews and the Shari’a supervisory board to ensure that appropriate action has been taken); and
(ii) ensuring that the firm’s reporting of financial information complies with internationally recognised accounting standards that comply with Shari’a.
(2) A majority of the members of the audit committee must be non-executive directors.
(3) The chair of the board must not be a member of the audit committee.
(4) The audit committee must meet at least 4 times a year.

 

Derived from QFCRA RM/2020-4 (as from 1st July 2021)