Back Custom print Link Text Only Rich Text Print

  • HC-3.2 HC-3.2 Audit Committee

    • HC-3.2.1

      The Board should establish an audit committee of at least three directors of which the majority should be independent including the Chairman. The committee should:

      (a) Review the company's accounting and financial practices;
      (b) Review the integrity of the investment firm licensee's financial and internal controls and financial statements;
      (c) Review the investment firm licensee's compliance with legal requirements;
      (d) Recommend the appointment, compensation and oversight of the investment firm licensee's external auditor; and
      (e) Recommend the appointment of the internal auditor (whether in-house or outsourced).
      Amended: January 2013
      January 2011

    • HC-3.2.2

      The Board or Audit Committee should ensure that the external audit firm and its partners are truly independent of the licensee and have no financial or other relationship with the licensee. Audit findings should be used as an independent check on the information received from management about the licensee's operations and performance and the effectiveness of internal controls.

      January 2011