Introduction
The Audit Committee charter for First Takaful Insurance Company administers the practices of the Audit Committee including its role of oversight and review activities across the organization.
Composition
- The committee shall comprise of at least three directors appointed by the Board. The Board shall designate one Member as the Chairman of the committee.
- Its Chairman shall be a non-executive Board member.
- If a member of the committee retires, resigns or is removed from the position, the vacancy shall be filled in by the Board.
- It is forbidden for the chairman of the BOD and the executive members to be a member in this committee.
- At least one (1) of its members should be from the independent (BOD) members.
- Within the Committee’s composition, at least one of its members shall hold a certificate and/or have experience that is relevant to the financial and accounting fields.
- Also, there should be a Secretary of the committee.
Responsibilities of the Committee
The Audit Committee of the Company is primarily responsible for ensuring effective and independent review process. In relation to Risk Based Internal Audit, key roles of the audit committee are:
- Understand the risk assessment approach and results and approve the audit plan for the Company.
- Review the results of the Internal Audit activity on and initiate appropriate actions if required.
- Supervising the internal audit department in the company to ensure its effectiveness in achieving its duties defined by the BOD.
- Review, express opinions and recommendations over the periodic financial statements before presenting the same to the BOD. This is to ensure the fairness and transparency of the financial reports.
