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
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.