committee (2)

8/3/2019 Committee (2)

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COMMITTEECOMMITTEE


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What is audit committeeWhat 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 orcompany have been conducted and its

books are kept in a proper manner.


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What do they doWhat do they do

y Overseeing the financial reporting anddisclosure process.

y Monitoring choice of accounting policies and

principle.y Oversight of regulatory compliance.

y Monitoring the internal control process.

y Overseeing the performance of the internal

audit function.

y Discussing risk management policies andpractices with management


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Asking the Right QuestionsAsking the Right Questions

Audit committee members must

maintain an in-depth understanding of

internal audit best practices and how

internal audit is functioning.


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Audit Committee CommunicationsAudit Committee Communications

Framework:O

bjectivesFramework:O

bjectives Promote effective and candid communications Enhance timely reporting, dialogue and sharing views

x Service approach

x Risk and Controlx Financial Reporting

x Governance


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7

Service

approach

Risk and

control

Financial

reporting

Governance

Ongoing assessment of needs & expectations

[Indicate timing] [Indicate timing] [Indicate timing] [Indicate timing]

Understanding the audit Staying informed Resolution and completion

Corporategovernance:

roles andpractices

Internalcontrol and

businessissuesreport

Assessingourperformanceand yours

Reporting timetable

Business unit

scope

Engagement team

Other deliverables

Risk analysis

Perspectives onfraud risk

Other regulatoryrequirements plan

Our audit plan

Communicationsplan

Risk conditionalert

Transparency

of corporatereporting

Reporting

requirements

Internal controldeficiencies

Accountingpolicies

Management

judgments

Quality ofearnings

Independence

Transparency

Audit

opinionBestpractices in

corporatereporting

PwC principlesand practices

Engagementletter andindependenceconfirmation

Update onaccounting/auditissues and riskanalysis

Quarterlyreview

Quarterlyreview

Quarterlyreview

Getting started

Audit Committee Communications PlanAudit Committee Communications Plan


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8

The PwCAudit

Global approach adaptable to all clients

Designed for continuous improvement

Performance metrics will play a larger role in futureaudits

Audit quality is at the core of our long term business

objectives.


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Charting the CourseCharting the Course

An audit committee charter is a

blueprint for its operation and should

address:

Processes

Procedures

Responsibilities


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Audit CommitteeAudit Committee

RequirementsRequirements

y The Audit Committee must consist of at least 2members.

y The 8th Directive requires that at least one memberof the Audit Committee must be independent andmust 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.


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Deficiencies in the operation of theDeficiencies in the operation of the

audit committeeaudit committeey 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.


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Whom should appoint auditWhom should appoint audit

committee ???committee ???y The requirement to establish an audit

committee applies to all public limited

companies, qualifying large private

companies, relevant undertakings andpublic interest entities.


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THANK YOU!!!...THANK YOU!!!...

committee (2)

Documents