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  • HC-3.2 HC-3.2 Audit Committee

    • HC-3.2.1

      The Board of licensees should establish an audit committee commensurate with the size, complexity and nature of its business. The audit committee should consider having at least three directors.

      October 2019

    • HC-3.2.2

      The majority of the directors should be independent including the Chairman.

      October 2019

    • HC-3.2.3

      Where there is an audit committee, it must:

      (a) Review the company's accounting and financial practices;
      (b) Review the integrity of the licensees' financial and internal controls and financial statements;
      (c) Review the licensees' compliance with legal requirements;
      (d) Recommend the appointment, compensation and oversight of the licensees' external auditor; and
      (e) Recommend the appointment of the internal auditor (whether in-house or outsourced).
      October 2019

    • HC-3.2.4

      The Board or Audit Committee must 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 must be used as an independent check on the information received from management about the licensees' operations and performance and the effectiveness of internal controls.

      October 2019