The Board has established an audit committee of at least three independent and non-executive directors. The chairperson of the audit committee is Mr. Pinhas Moskovich, who is an independent and non-executive director. At least one of the committee members holds a professional qualification in audit or accounting and is in good standing with his or her respective professional body. The important attributes of the current committee members include:
- broad business knowledge relevant to the company’s business
- keen awareness of the interests of the investing public and familiarity with basic accounting principles
- objectivity in carrying out their mandate without any conflict of interest
An Audit Plan is prepared each year, following consultation with the Board, senior management and input from the Chair of Internal Audit. The Chairman of the Board approves the Plan and ensures that steps are taken concerning shortcomings and implementing the proposed actions that emerge from internal and external auditing. Whereas listed companies were previously required to have periodic legal and compliance audits, the Code now requires such companies to have annual governance audits in addition to the legal and compliance audits. The purpose of this is to ascertain that the company is operating on sound governance practices. It is noteworthy that the reporting requirements of listed companies have been enhanced to include an element of independent reporting. This is captured from the chapters of the Code touching on Accountability, Risk Management and Transparency and Disclosure Requirements, which generally require the boards of such companies to rotate independent auditors every six to nine years. No listed company will be in a position to retain the services of an audit firm indefinitely. The significance of this is that it ensures the integrity of any data or audit reports issued. This is also in line with the International Financial Reporting Standards.