HC-3.4.6
The audit committee must, at minimum:
(a) Ensure that the licensee has effective and adequate policies covering all its business activities, internal audit, financial reporting, compliance, risk management, prevention of frauds and cyber security breaches, etc.;
(b) Oversee the financial reporting process;
(c) Oversee and interact with the licensee’s internal and external auditors;
(d) Review the integrity of the licensee’s financial statements;
(e) Recommend to the Board, based on a Board approved objective criteria, the appointment, remuneration, dismissal and rotation of external auditors;
(f) Review and approve the internal and external audit and compliance scope;
(g) Receive internal and external audit and compliance reports and ensure that senior management is taking necessary corrective actions in a timely manner to address any control weaknesses, non-compliance with policies, laws and regulations, and other problems identified by auditors, the head of compliance and other control functions;
(h) Assess once a year the extent to which the licensee is managing its compliance risk effectively;
(i) Ensure that the agenda for their meetings includes compliance and internal audit issues at least every quarter;
(j) Recommend the appointment and dismissal of the heads of internal audit and compliance functions. The licensee must also discuss the reasons for their dismissal with the CBB.
(k) Make a determination, at least once a year, of the external auditor’s independence;
(l) Review and supervise the implementation and enforcement of the licensee's code of conduct, unless such mandate is delegated to another committee such as the Governance Committee; and
(m) Ensure that senior management establishes and maintains an adequate and effective internal control systems, procedures and processes for the business of the licensee .
Added: July 2023