Cap. 499 Art. 16Audit Committee.

(1) The Authority shall establish an Audit Committee with written terms of reference, which clearly lay down the authority, responsibilities, and duties of such committee.

(2) (a) The Audit Committee shall meet as frequently as necessary but at least six times a year.

(b) Meetings of the Audit Committee shall be chaired by the Deputy Chairperson of the Authority, or in his absence, by such member of the Authority as may be designated for such purpose by the Chairperson of the Authority.

(c) The members of the Audit Committee shall be appointed on such terms and conditions as may be determined by the Authority.

(3) Without prejudice to the generality of the provisions of sub-article (1), the Audit Committee shall have the following functions:

(a) to provide oversight of the systems of internal control and risk management of the Authority and to assist and support the Authority in discharging its responsibilities in relation thereto;

(b) to provide the communication link with external auditors and to evaluate and coordinate the audit and financial reporting process of the Authority;

(c) to scrutinize and evaluate any transaction to be entered into by the Authority with a value exceeding two hundred and fifty thousand euro (€250,000); and

(d) to review and assess the effectiveness of the management of the Authority in its compliance with policies and in the discharge of its regulatory and compliance functions;

(e) to manage all the most important risks undertaken by the Authority.

(4) The Audit Committee shall report directly to the Authority at least once every six months and at any such times as may be directed by the Authority.