Audit Committee

From Open Risk Manual


The Audit Committee is an internal committee that is required for systemically important banks and generally advisable for all banks.

The Audit committee is responsible, among other things, for:

  • the Financial Reporting process;
  • providing oversight of and interacting with the bank’s internal and external auditors;
  • approving, or recommending to the board or shareholders for their approval, the appointment, compensation and dismissal of external auditors;
  • reviewing and approving the audit scope and frequency

Regulatory Requirements

For banks of large size, risk profile or complexity it is strongly advised. For other banks it remains strongly recommended.

  • It is required to be distinct from other committees.
  • Should have a chair who is independent and is not the chair of the board or any other committee.
  • Should be made up entirely of independent or non-executive board members.
  • Should include members who have experience in audit practices and Financial Literacy at banks.

See Also