Platinum Bank Audit

Audit

The Audit Committee and the Internal Audit Function are responsible for monitoring all entity functions and processes on a regular basis.

The primary function of the Audit Committee is to assist the Supervisory Board in the supervision of internal audit processes, reviewing financial statements, monitoring corporate governance quality, and maintaining effective corporate control.

The Audit Committee is answerable directly to the Supervisory Board and is composed of the following members:

Yuri Blaschuk (Chairman)
Stuart Sinclair
Margot Jacobs

The Committee is obliged to oversee the internal audit process this meaning:

The Committee is obliged to oversee the internal audit process, with the following duties:
- Reviewing activities, organizational structure, and qualifications of the Internal Audit
- Assuring that Internal Audit is adequately staffed and financed
- Reviewing and approving the Internal Audit charter on a periodic basis
- Reviewing and approving the Internal Audit work plan
- Requesting Internal Audit to perform special investigations if required
- Reviewing reports of external auditors
The Committee’s principal activities in the area of financial reporting are:
- Overseeing external audit coverage including engagement letters, fees, timing, reviewing audit performance, non-audit services, auditors’ independence, et cetera.
- Reviewing accounting policy and policy decisions based mainly on reviews and analyses made by external and internal auditors
- Reviewing the financial statements including, interim and annual financial statements, auditors’ opinions and management letters
- Reviewing the integrity of the organization’s financial reporting, processes (internal and external, in consultation with the independent auditors)
- Considering the independent auditors’ judgments about common accounting principles
- Discussing with management and independent auditors all findings that independent auditors would include in their report, including internal control recommendations
- Consulting with the independent auditors in the absence of management about internal controls and the fullness and accuracy of the organization’s financial statements
- Analyzing significant issues and changes in accounting and financial reporting standards to understand their impact on the financial statements
- Reviewing any significant disagreement among management and the independent auditors or the Internal Audit in connection with the preparation of the financial statement
The Committee engages in the following activities in order to guarantee the quality of corporate governance:
- Reviewing internal audit reports on corporate policy relating to compliance with law and regulations, ethics, conflict of interests, investigations of misconduct and fraud
- Reviewing current/pending litigation or regulatory proceedings with bearing on corporate governance
- Reviewing management’s monitoring of the compliance with the organization’s Ethical Code
- Reviewing significant cases of employee conflict of interests, misconduct, or fraud
- Establishing regular and separate systems of reporting to the Committee by management, independent auditors and the Internal Audit
- Reviewing any significant difficulties encountered during the course of the audit, including any restrictions on the scope of work or access to required information
- Reviewing any legal matter that could have a significant impact on the Pt Platinum Limited, its subsidiaries or related companies
The Committee is responsible for reviewing the key financial and operational risk areas and systems of internal controls, including:
- Reviewing internal audit reports
- Evaluating the effectiveness of internal control and risk management
- Reviewing and assessing management efforts to establish an adequate internal control environment
- Reviewing contingency plans and procedures
- Ensuring implementation of internal audit recommendations by management
- Ensuring implementation of independent auditors’ recommendations by management
- Considering the nature and extent of risks acceptable for the business and how these key risks are identified, evaluated and managed.

The Committee has the authority to conduct any investigation it deems necessary or appropriate in order to fulfill its duties. The Committee has unrestricted access to the independent public auditors, Internal Audit Department (“IAD”), and officer or employee, and may require any officer or employee or independent auditors to attend a meeting of the Committee or to meet with any members of, or consultants or advisors to, the Committee.

The Committee reports to the Supervisory Board not less than once per quarter.

The Internal Audit Function is an independent appraisal mechanism established to examine and evaluate the effectiveness of the risk management, control and governance processes of Pt Platinum Limited (?), its subsidiaries and related companies. The objective of the Internal Audit is to assist Supervisory Board and the Management, its subsidiaries and related companies in the attainment of their goals. To this end, the Internal Audit provides them with analyses, appraisals, recommendations, counsel and information concerning activities audited.

The Internal Audit encompasses the examination and evaluation of the adequacy and effectiveness of the internal control system and the quality of performance within Pt Platinum Limited, its subsidiaries and related companies. In particular, the internal auditors conduct:

The audit of the reliability, integrity and timeliness of financial and operating information including the means used to identify, measure, classify and report such information.
The audit of the established system to ensure compliance with those policies, plans, procedures, laws and regulations which may have a significant impact on company’s operations and reporting
The assessment of the means of safeguarding assets, and as appropriate to verify the existence and value of such assets.
The assessment of the economy and efficiency with which resources are employed.
The audit of projects and programs to ascertain whether results are consistent with established objectives and goals and whether they are being carried as planned.
Carry out audits, investigations and reviews as requested by the Audit Committee.

Reporting lines

Internal auditors render impartial and unbiased judgments about activities audited. The Internal Audit provides audit reports to the Supervisory Board and operates according to the directives of the Board and the Audit Committee.

Relationships with other audit and control units

The external auditors have access to relevant audit reports, and must be kept informed of any significant matters that come to the internal auditor’s attention that may affect the work of the external auditor. Similarly, the external auditors will inform the internal auditors of any significant matters that may affect internal auditing. The Internal Audit may and should be useful in determining the nature, timing and extent of external auditing activities. However, the external auditors have the sole responsibility for the audit opinion on financial statements. The existence of additional departments within the organization for controlling or monitoring specific activities does not relieve the internal audit department from examining those specific activities. Examples of such departments are Risk Management and Compliance. However, for the sake of efficiency, the Internal Audit Department may use information reported by those control departments in carrying out its tasks.

Standards

The Internal Audit Department follows the Standards for the Professional Practice of Internal Auditing and Code of Ethics issued by The Institute of Internal Auditors.