The Audit Committee’s Report to the General Assembly
For the Fiscal Year Ending 31 December 2022
The Audit Committee reviews financial statements and accounting policies and supervises the activities of internal audit and external auditors. During the fiscal year 2022, the Committee held eight (8) meetings. In 2022, the Audit Committee performed activities falling within its jurisdiction, the most prominent of which are:
- Reviewing and approving the internal audit plan for the fiscal year 2022.
- Supervising the Internal Audit Department and following-up the execution of the audit plan during the fiscal year 2022.
- Reviewing Internal Audit reports during 2022.
- Reviewing annual financial statements as of 31 December 2022 as well as quarterly statements and recommending the approval of the same by the Board of Directors.
- Reviewing the Management Letter issued by the External Auditors.
- Reviewing Auditor’s proposals and recommending the appointment of Auditors for the year ending 31 December 2022.
- Reviewing the quarterly compliance reports on the Bank’s compliance with regulatory requirements and internal policies and procedures.
- Reviewing and recommending approval of the proposed organizational structure for the Internal Audit Division to the Board of Directors.
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 is commensurate 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 specific controls. The internal control system has been designed to mitigate risks in order to achieve specific objectives. It is therefore designed to give reasonable assurances to avoid material errors and relevant losses.
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 2022, there were no material observations relating to the effectiveness of the internal control system and procedures in the Bank.
Mr. Abdulrahman bin Mohammad Ramzi Addas
Chairman of the Committee
Mr. Haitham bin Rashid Al-Sheikh Mubarak
Committee Member
Dr. Saad Bin Saleh AlRowaiti
Committee Member
Mr. Maher Bin Saad AlAiyadhi
Committee Member
Mr. Othman bin Mohammed Al-Tuwaijri
Committee Member