The Audit Committee is a specialized sub-committee of the Board of Directors composed entirely of independent, non-executive directors who are financially literate. The Audit Committee serves as the primary governance body responsible for overseeing the organization’s financial reporting processes, internal control environment, risk management activities, and auditing functions.
                      ┌─────────────────────────────────────────┐
                      │             AUDIT COMMITTEE             │
                      │ • Composed of Independent Directors     │
                      │ • Approves Risk-Based Audit Plans       │
                      │ • Approves Resource Budgets & Tools    │
                      └────────────────────▲────────────────────┘
                                           │
                                           │ (Quarterly Oversight Activity)
                                           │
                      ┌────────────────────┴────────────────────┐
                      │      CHIEF AUDIT EXECUTIVE (CAE)        │
                      │ • Presents Open Audit Findings Logs     │
                      │ • Escalates Management Actions Backlogs │
                      └─────────────────────────────────────────┘

The Audit Committee holds clear responsibilities to safeguard internal audit independence:
  • Approving the Internal Audit Charter: Periodically reviewing and signing the charter document to confirm the audit function’s organizational authority.
  • Approving the Risk-Based Audit Plan: Reviewing the scope of planned audit activities to verify that high-risk business lines and processes are subject to appropriate assurance coverage.
  • Provisions for Financial and Resource Budgets: Reviewing and approving the internal audit budget to ensure the function has the headcount, software tools, and training required to fulfill its mandate.
  • Reviewing Open Findings Logs: Meeting quarterly with the CAE to review open audit findings logs, evaluate the status of management’s corrective action plans, and review any cases where executive management has chosen to accept a level of risk that exceeds corporate tolerances.

 
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