The Audit Committee report 2020
The Audit Committee is responsible for monitoring the performance and application of the internal control systems in the company, ensuring the efficiency and effectiveness of the systems, verifying the implementation of decisions related to internal control, ensuring compliance with the application of relevant Regulations and instructions, studying and reviewing the financial statements, accounting policies, external audit reports, and evaluating the performance of external auditors in addition to the terms of reference mentioned in the Regulation of audit committees in insurance companies issued by the Saudi Central Bank.
The Audit Committee consists of:
1. Mr. Tawfiq Suliman Al-Muqait - Chairman of Audit Committee (Outside the Board of Directors) 2. Mr. Ahmed Abdel Rahman Al Mohsen – Member (Outside the Board of Directors)
3. Mr. Abdulaziz Suliman Al-Sayyari – Member (Outside the Board of Directors) 4. Mr. Mohammed Abdullah Al-Muammar – Member (Inside the Board of Directors)
The Audit Committee held (6) meetings during the reporting period to implement the tasks assigned to it as follows:
No. Name of Director Membership Nature
Meeting No.
(1) 23/02/2020
Meeting No.
(2) 03/06/2020
Meeting No.
(3) 14/07/2020
Meeting No.
(4) 13/08/2020
Meeting No.
(5) 08/10/2020
Meeting No.
(6) 27/10/2020 1. Mr. Tawfiq
Soliman Al- Muqait
Committee Chairman
Attend Attend Attend Attend Attend Attend
2. Mr. Ahmed Abdel Rahman Al Mohsen
Member Attend Attend Attend Attend Attend Attend
3. Mr. Abdulaziz Soliman Al- Sayyari
Member Attend Attend Attend Attend Attend Attend
4. Mr. Mohammed Abdullah Al- Muammar
Member Attend Attend Attend Attend Attend Attend
Attendance= H, Absence= Z,
Results of the annual audit of the effectiveness of internal control procedures and the Audit Committee opinion on the adequacy of the control system:
Internal audit is an objective and independent assurance and advisory activity to add value and improve the Company's operations. The internal audit helps the Company in achieving its strategic objectives by providing a regular basis for evaluating and improving the effectiveness and adequacy of the internal control systems and the processes involved in the control performance in the Company. Accordingly, the Internal Audit Department carried out many periodic and special review processes that would ensure the accuracy and effectiveness of the performance and the regulatory control processes, financial management,
health insurance management, and vehicles in addition to contributing to audit the initial and final financial statements and coordinating the works of the External Control Authorities.
The Board of Directors reviewed the minutes of the Audit Committee Meetings periodically. The results of the audit also resulted in notes related to motor claims management, Customer Care Management, and technical system development processes that include recommendations and notes regarding the performance of the aforementioned departments that need to increase procedures to achieve the Company's strategic objectives.
According to the Committee’s Assessment of the adequacy of the control system, the committee has checked the effectiveness and adequacy of the internal control system and its weaknesses, in order to raise the effectiveness, efficiency, and adequacy of the internal control system. The Committee recommended activating the Company's electronic systems for human resources and asset management with accounting systems before the end of 2020 (Due to the Corona Pandemic, the period for implementing the new system was extended). The Board of Directors confirmed the recommendations of the Audit Committee in this regard to support and raise the level of effectiveness of control procedures in the company and increase its efficiency.
In 2020, the Audit Committee submitted several major and specific recommendations to the Board of Directors, aimed at improving supervision and internal control processes to meet the current and future needs of the Company in the best way. These efforts can be summarized in the following points:
1. Approval of the internal audit plan for 2020.
2. Follow up of the development of the Company's technical system, accounting system, and asset management.
3. Continuity of work to follow up the corrective measures taken by the Company, especially the claims, customer care, and vehicle subscription.
4. Continuity of monitoring the development of the human resources system and policy.
5. (6) Audit Committee meetings were held.
It may be noted that there are no decisions or recommendations of the Audit Committee that go against or conflict with the decisions of the Board of Directors, noting that the Board of Directors of the Company approved, adopted, and endorsed the full comments received from the Audit Committee.
