Audit Committee Report for the Financial Year Ended on 31/12/2021
The Audit Committee held (11) meetings in 2021 to independently evaluate the effectiveness of the Internal Control System as well as the fairness of the financial statements, with the understanding that the responsibilities of the Audit Committee include the following:
- Studying the interim and annual financial statements prepared by the Executive Management.
- Studying the External Auditor’s reports and the Management Letter that contains any observations on the Internal Control Systems.
- Recommending the Board of Directors to appoint the External Auditor and review its plan and activities.
- Monitoring and overseeing the Internal Audit BL and approving its annual risk-based audit plan.
- Reviewing the Internal Audit’s periodic reports that include the most significant observations, following up on the implementation of the corrective actions to enhance the internal control environment in the Company; keeping in mind that the Executive Management is responsible for creating and executing internal controls and the Internal Control System in the Company as well as conducting continuous improvements to enhance the efficiency and effectiveness of the Internal Control System.
Based on the results of planned and additional internal audit engagements conducted by the Internal Audit BL, and after discussion with the External Auditor and the Executive Management regarding the interim and annual financial statements for 2021 and the Internal Control System, nothing came to the attention of the Audit Committee regarding any significant deficiencies in the Internal Control System, taking into consideration that the absolute efficiency of any system cannot be assured.
