Terms of Reference

The Audit Committee is entrusted：

1.    to review the consistency and appropriateness of the accounting policies of the University and to oversee the preparation of the annual financial statements of the University for submission to the Governing Board for approval; 

2.    to consider and make recommendations regarding the appointment of external audits, including the agreement of the audit fee, and to monitor their effectiveness including matters affecting their independence and objectivity; 

3.    to approve the annual work plan of the Internal Audit Office, and to review the reports of the Internal Audit Office regarding the assessment of the effectiveness of the University’s internal control and risk management systems, and on other major issues such as internal audit reform plans, major policies and development strategies, as well as “significant clues to major disciplinary and legal violations” and other significant matters related to internal audits, and to ensure the appropriate action is taken by the University management to address the issues raised in the findings of the Internal Audit Office; 

4.    to approve the staffing levels of the Internal Audit Office, including the remuneration and terms of appointment of the audit staff, and to consider any question of the resignation or dismissal of the head of the Internal Audit Office; 

5.    to monitor and review the effectiveness and performance of the work of the Internal Audit Office and to ensure proper resources are allocated to facilitate the execution of its work; 

6.    to commission any investigation on any matters as the Committee deems necessary, or referred to it by the Governing Board;

7.    to oversee the University’s policies on fraud and risk management, including the effectiveness of any action taken under these policies; and 

8.    to submit to the Governing Board an annual report on its work and the results of the work undertaken by the Internal Audit Office. 

Notes：

a.    To enhance communication between the Finance Committee and the Audit Committee for matters relevant to both Committees, cross-membership between the Committees is recommended. 

b.    The modus operandi regarding the audit of the annual financial statements includes: 
- to meet with the external auditor to discuss their annual audit plan, results of the annual audit and recommendations, and to review management letters prepared by them, if any;
- to consider the necessary actions required to ensure recommendations from the external auditors are properly addressed and acted upon.