The Case Study - Seylan Bank

Seylan Bank PLC Annual Report 2009 91RuleStatus /Remarks7.10.6 Audit CommitteeA listed company shall have an Audit Committee inconformity with the following:(a) Composition - should comprise a minimumof two independent Non-Executive Directors orNon-Executive Directors, a majority of whom shallbe independent, whichever shall be higher.One Non-Executive Director shall be appointed asChairman of the Committee by the board of directors.Unless otherwise determined by the AuditCommittee the Chief Executive Officer and theChief Financial Officer of the listed company shallattend Audit Committee meetings.The Chairman or one member of the committeeshould be a Member of a recognized professionalaccounting body.(b) Functions shall include -• Oversight of the preparation, presentationand adequacy of disclosures in the FinancialStatements of a listed company in accordancewith Sri Lanka Accounting Standards.• Oversight of the Company’s compliance withfinancial reporting requirements, informationrequirements of the Companies Act and otherrelevant financial reporting related regulationsand requirements.• Oversight over processes to ensure Company’sinternal controls and risk management areadequate, to meet the requirements of theSri Lanka Auditing Standards.• Assessment of the independence andperformance of the company’s External Auditors.• To make recommendations to the boardpertaining to appointment, reappointment andremoval of External Auditors and to approve theremuneration and terms of engagement of theExternal Auditors.CompliedThe Audit Committee consists of three Non-ExecutiveDirectors, of whom two are independent.CompliedMr. P.L.P. Withana, an Independent Non-ExecutiveDirector is the Chairman of the Committee.CompliedThe CEO and CFO attend the Committee meetingsby invitation.CompliedIn 2009, two members of the Committee weremembers of recognised professional accountingbodies and the Chairman of the Committee was amember of The Institute of Chartered Accountantsof Sri Lanka.CompliedThe Committee reviews all interim unauditedand audited Financial Statements prepared inconformity with Sri Lanka Accounting Standards.CompliedFinancial reporting requirements are strictly compliedin line with the Companies Act, Sri Lanka AccountingStandards and regulatory requirements imposed bythe Colombo Stock Exchange and the Central Bank.CompliedThe Committee monitors and reviews the effectivenessof the internal audit systems which includes theinternal audit and information system audit functions.CompliedThe Committee monitors and reviews the independenceof the External Auditors as part of its scope.Complied