The Audit Committee’s Report to the General Assembly
For the Fiscal Year ending 31 December 202 1
Audit Committee reviews financial statements and accounting policies as well as supervising the activities of internal audit and external auditors. During the fiscal year 2021, the Committee held six (6) meetings. In 2021, Audit Committee performed activities falling within its jurisdiction, the most prominent of which are:
- Review and approval of the internal audit plan for the fiscal year 2021.
- Supervising the internal audit Department and follow-up the execution of the audit plan during the fiscal year 2021.
- Reviewing Internal Audit reports during 2021.
- Reviewing annual financial statements as of 31 December 2021 as well as quarterly statements and recommend the approval of the same by the Board of Directors.
- Reviewing the Management Letter issued by the External Auditors.
- Reviewing External Auditor’s proposals and recommending the appointment of External Auditors for the year ending 31 December 2021.
- Reviewing the compliance quarterly reports on the Bank’s compliance with regulatory requirements and internal policies and procedures.
Adequacy of the Internal Control System
Based on the responsibility of the Bank’s Management in terms of preparing a comprehensive and effective system for internal controls to achieve the approved objectives of the Bank, an internal control system has been developed that suits the Bank’s activities and takes into account the relative importance of financial and other risks inherent in these activities. An internal control system has been designed to manage and control risks in a timely manner. This provides a reasonable amount of continuous control and early detection and handling of potential risks.
The internal control system is based on the vision and assessment of the Bank’s Management to put in place a control system which commensurates with the relative importance of financial and other risks inherent in the Bank’s activities with a reasonable cost and benefit in order to achieve business objectives. The internal control system has been designed to mitigate risks in order to achieve specific objectives.
The Audit Committee periodically reviews the reports prepared by Internal and External Auditors. These reports include an assessment of the adequacy and effectiveness of internal controls currently in place.
Based on the aforementioned, we believe that the Bank has a reasonably adequate and effective internal control system in terms of design and implementation. During 2021, there were no material observations relating to the effectiveness of the internal control system and procedures in the Bank.
Dr Ahmed Bin Abdullah AlMunif
Member
Dr Saad Bin Saleh AlRowaiti
Member
Khalid Bin Mohammed AlKhiwaitir
Member
Abdul Rahman Bin Mohammed Ramzy Addas
Member
Eng Mutlaq Bin Hamad AlMurishid
Chairman