|
1.
|
Ensure full, fair, accurate, timely and understandable financial disclosure is provided in reports and documents the Company files with and/or submits to regulatory authorities, presents to its shareholders and/or publicly discloses;
|
|
2.
|
Ensure that such reports and documents comply with rules and regulations set by applicable laws, regulations and stock exchange policies;
|
|
3.
|
Review qualifications, independence and performance of the Company's auditor (the “Auditor”);
|
|
4.
|
Assess the appropriateness of the Company's accounting policies and practices and effectiveness of internal controls and procedures in compliance with the Sarbanes-Oxley Act of 2002; and
|
|
5.
|
Monitor for compliance with the Company’s Code of Business Conduct and Code of Ethics for Senior Financial Officers.
|
|
1)
|
the Company’s annual general meeting of shareholders, or
|
|
2)
|
a resolution from the majority of the shareholders waiving the Company’s annual general meeting
|
|
1.
|
Ask the Auditor to report directly to the Committee;
|
|
2.
|
Ask the Auditor to disclose in writing any relationship with the Company or services performed for the Company that may affect the objectivity or independence of the Auditor;
|
|
3.
|
Take, or recommend that the Board take, the necessary action to ensure the objectivity or independence of the Auditor; and
|
|
4.
|
Review and approve the Company's hiring policies regarding partners, employees or former partners or employees of the Auditor as the objectivity or independence of the Auditor could be affected by such policies.
|
|
1.
|
Be responsible for selection, engagement, evaluation and retention of the Company’s Auditor
|
|
2.
|
Be responsible for oversight of work done by the Auditor engaged specifically for the purpose of preparing or issuing audit reports on the year-end financial statements and on the internal controls and procedures or related work (including resolution of disagreements between the Auditor and management regarding financial reporting);
|
|
3.
|
Review the performance of the Auditor annually and recommend either re-appointment of the Auditor or appointment of a new auditor and Auditor compensation to the Board;
|
|
4.
|
Review reports of the Auditor from all applicable regulatory bodies on an annual basis
|
|
5.
|
Pre-approve all auditing services, including fees and terms thereof, to be provided by the Auditor;
|
|
6.
|
Pre-approve non-audit services, including fees and terms thereof, to be provided by the Auditor unless such non-audit services:
|
|
a.
|
Are reasonably expected not to constitute, in the aggregate, more than 5% of the total amount of Auditor compensation paid during the fiscal year in which the non-audit services are provided; and
|
|
b.
|
Were not recognized by management to be non-audit services at the time of the engagement.
|
|
1.
|
Material judgments made in connection with the preparation of the Company's financial statements, including changes in the selection or application of accounting policies and practices;
|
|
2.
|
The adequacy of the Company's internal controls and procedures as discussed under the heading Internal Controls and Procedures below;
|
|
3.
|
Related party transactions;
|
|
4.
|
The summary of accounting policies and notes to the financial statements;
|
|
5.
|
Correspondence with regulatory agencies relating to the Company’s regular filings or annual tax returns;
|
|
6.
|
The impact of off-balance-sheet structures on the financial statements;
|
|
7.
|
Major financial risk exposure and steps taken by management to control such exposure;
|
|
8.
|
The effect of legislation or changes in regulations and accounting initiatives on the financial statements; and
|
|
9.
|
Matters regarding a particular audit:
|
|
a.
|
The management inquiry letter prepared and submitted by the Auditor and managements’ response to the inquiry letter;
|
|
b.
|
The schedule of unadjusted differences;
|
|
c.
|
The summary of adjusting entries;
|
|
d.
|
A review of the audit in detail with the Auditor at a formal meeting after the audit has been completed and the Auditor has issued an audit opinion;
|
|
e.
|
Any difficulties encountered in the course of the audit, including any restrictions on the scope of activities or the inability to obtain specific information, and any significant disagreements with management;
|
|
f.
|
The adoption of, or changes to, the Company's accounting policies and practices or internal controls and procedures as recommended by the Auditor; and
|
|
g.
|
The Auditor’s management letter issued after the completion of the annual audit.
|
|
1.
|
Review management’s assessment over the Company’s internal control over financial reporting and their incidental findings during the course of the audit;
|
|
2.
|
Review and policies with respect to the risk assessment and risk management
|
|
3.
|
Review with management their assessments over the internal control over financial reporting;
|
|
4.
|
Review with management the scope and plans for addressing deficiencies, if any, in internal controls and procedures; and
|
|
5.
|
Advise the Board of any material weaknesses in internal controls and procedures and the steps being taken to remediate such weaknesses.
|
|
1.
|
Ensure that adequate procedures are in place for a review of the interim and audited financial statements and management discussion and analysis (“MD&A”) before these are submitted to the Board for final approval;
|
|
2.
|
Review and approve, by meeting of the members or audit committee resolution, the interim unaudited and by meeting the annual audited financial statements, MD&A and news releases that contain financial information before these are submitted to the Board for final approval and released to regulatory authorities, stock exchange(s), shareholders and the public;
|
|
3.
|
Review disclosures made by the Company's Chief Executive Officer and Chief Financial Officer during their certification process of the Company's financial statements about deficiencies in internal controls and procedures or any fraud involving an employee(s) whose responsibility includes applying or overseeing internal controls; and
|
|
4.
|
Review the Proxy Statement, if applicable, prepared for the Company’s annual general meeting.
|
|
1.
|
Review the Form 10-K, Form 10-Q, MD&A and news releases that contain financial information, and if appropriate consult with external legal counsel and/or management, before these are submitted to the Board for final approval; and
|
|
2.
|
Review with management and confirm that the Company is in compliance with laws and regulations in the jurisdictions in which the Company operates and as these relate to financial reporting.
|
|
1.
|
Receive and treat such expressions of concern in confidence;
|
|
2.
|
Review as soon as possible the concern and address the same as the Committee deems necessary;
|
|
3.
|
Retain records relating to a concern for a period the Committee judges to be appropriate; and
|
|
4.
|
Prepare a report for the Board once per quarter or otherwise upon request from the Board with a summary of concerns received, outstanding and unresolved concerns, how such concerns are being handled, the results of any investigations and any corrective actions taken.
|
|
1.
|
Engage independent counsel and other advisors as it determines necessary to carry out its duties;
|
|
2.
|
Set and pay the compensation for any advisors employed by the Committee; and
|
|
3.
|
Communicate directly with the internal and external auditors.
|
|
1.
|
Provide an avenue for and encourage frequent and open communication between the Auditor, management and the Board;
|
|
2.
|
Report regularly their findings to the Board with respect to the integrity of the Company’s financial statements, compliance with legal or regulatory requirements and the performance and independence of the Company’s Auditors
|
|
3.
|
Study or investigate any matter of interest or concern, which the Committee, in its sole discretion, deems appropriate for study or investigation by the Committee;
|
|
4.
|
Discuss with the Auditor, without the presence of management, the Company's critical accounting policies and practices, internal control systems and processes and completeness and accuracy of the Company's financial statements once each year;
|
|
5.
|
Request that the Auditor, a manager or the Company’s external legal counsel attend meetings of the Committee or meet with any member of, or advisors to, the Committee to the extent it deems necessary or appropriate;
|
|
6.
|
Respond to requests for information or complaints regarding questionable bookkeeping or accounting practices, issues with internal controls and procedures or auditing or reporting matters discussed under the heading Reporting of Financial Concerns below;
|
|
7.
|
Stay abreast of trends in accounting and financial reporting and review with the Auditor and management as required;
|
|
8.
|
Assess the adequacy of the Charter once each year and recommend changes, if indicated, to the Board;
|
|
9.
|
Assess the Committee's own performance once each year and
|
|
10.
|
Review the qualifications of the accounting and financial personnel.
|